ChartSmarter Friday Game Plan 1/9/15

Markets enjoyed a second consecutive strong session Thursday with both the Nasdaq and S&P 500 recouping their 50 day SMAs. Both indexes rallied 1.8% and like Wednesday traded very tight throughout the afternoon hours very reluctant to give back any big gains. Going into Friday the S&P 500 is up .2% for the week and 2 of the last 4 weeks has traded below the round psychological 2000 figure and bounced firmly. The Nasdaq is up .15% for the week and notice it too has nice long lower tails this week and the week ending 12/19/14. This indicates buyers stepping in and purchasing the dips. The Nasdaq looks like it is in the early stages of developing a bullish ascending triangle pattern with the horizontal line on top aligning with the round 4800 figure. Homebuilders were among the big winners Thursday with the XHB up better than 5% the last 2 sessions. Notice the volume surge as Wednesday and Thursday saw volume double the normal daily average, the first time that has happened in more than a year. The ETF did take out a 33.95 double bottom with handle trigger on 12/29/14 originally, but volume was non existent. Volume yesterday on the recapture of that pivot was substantial. Their is an interesting collection of names in the XHB, not only builders. Largest component OC is on a tear up 3 days in a row in bulging trade and more than 10%.