ChartSmarter Friday Game Plan 12/5/14

Markets bobbed in and out of negative and positive territory Thursday to finish lower for the session. Both the Nasdaq and S&P 500 closed down .1%. Both benchmarks are looking for their seventh consecutive weekly gains. The Nasdaq going into Friday is lower by .5% for the week while the S&P 500 is higher by .2%. Despite the negligible losses only one major group finishing in the green and that was the telecommunications group. Energy once again was the worst performer as the space looks for some bottoming signals. The XLE interestingly enough looks like it may be putting in a double bottom aligning with the round 80 handle. On both 10/15 and 12/1 the fund slipped beneath the round number but managed a nice reversal to close above. It did record 2 days with closes below 80, but just barely with closes of 79.95 and 79.82 on 10/14 and 11/28. Look for names within the sector that have been able to shine. These names will often be the leaders once the group receives some sorely needed rotation into. Today while many of the names I monitor, I noticed SLB go green before any others. EOG managed to end the day in the black. Below is how we analyzed SLB in this Mondays Game Plan. We took keen notice of the strong reversal last Friday where the vast majority of stocks in the group finished well into the lower half of their daily ranges. Take note of strong relative strength. If you listen closely enough it will provide you with valuable clues.