ChartSmarter Tuesday Game Plan 9/9/14

Markets started the week off in a bifurcated manner with the Nasdaq gaining .2%, and the S&P 500 losing .3%, but managing to slice its mid afternoon losses in half. The S&P 500 did close above the round 200o handle and the Nasdaq is just beneath its own round figure of 4600. That level was stubborn resistance last Wednesday and Thursday, when it actually traded above it intraday. Remember both of those sessions reversed to close nearly 40 handles off their highs of the day. Another fail here could easily push the tech benchmark back to its prior double bottom breakout of 4486 taken out on 8/18. With the pace of the upward sloping 50 day SMA that 2% move lower would most likely meet support there. AAPL’s 3.4% loss last week and its poor start this week may exacerbate that weakness. Of course tomorrow will be an interesting day for that name. A small pause for the Nasdaq however would be actually healthy. Energy again seems to be the theme and the sector started the week off right where it left off last week. Bearishly. The XLE is right back to the important 95 level where a tight flag was taken out back on 5/29. That figure held in early August and lets see what happens this week. Some names in the group did finish off their lows. PXD pierced its 200 day SMA to the downside today, but managed to close above it. I will be watching EOG closely tomorrow as it approaches the 30 RSI oversold level and the round 100 figure. The comfort of the 200 day SMA is just below. Risk/reward is the name of the game.