ChartSmarter Wednesday Game Plan 12/10/14

Markets recovered strongly from early morning losses due to overseas weakness. The Nasdaq actually closed green and recouped almost 100 handles from lows in the early ongoing gaining .5%. The S&P 500 recorded a nice hammer recapturing more than 1% off session lows and narrowly missed going positive. Volatility has returned in December after a very smooth November, which looking back may have been the calm before the storm. Now do we storm higher of lower into year end? Seasonality suggests the latter. Energy and utilities marched higher Tuesday and the XLU has been trading very tautly and is higher 14 of the last 18 weeks. The ETF can be bought with a trigger of 46.71. The second largest component in the group NEE looks ready to go. The stock originally took out the round par figure briefly in late June. It then went back below 100 which many names will do the first time above that important figure, and regathered itself and took out a 98.60 double bottom pivot point on 10/28. Currently it enjoys the altitude above the par level much better and has been trading tightly forming a nice base. A move above 106 can be bought and would represent an all time highs. Notice as well how the round 90 number was very supportive in the throws of the mid October lows.