ChartSmarter Tuesday Game Plan 2/10/15

Markets began the week on a sour note with a late session sell off for the benchmarks, after being underwater for the vast majority of the day. The Nasdaq and S&P 500 dropped .4%. The indexes seemed to shy away from Greece news and soft trade data from China. Materials and energy were the only sectors to side step the softness. What has quickly become an rapid development to the flip side of the energy rebound, with perhaps risk on returning, is the decline in the once strong utilities. Today the XLU lost almost 1% following last Fridays slide of 4.1% in more than double average daily volume slicing its 50 day SMA in the process. High dividend paying REITS took it on the chin last Friday too. Keeping an eye on sector rotation healthcare has been weakening with the once powerful XLV taking out a bullish ascending triangle pattern to the DOWNSIDE, obviously the opposite of where the break should take place. Looking back on last week however there does seem to be a sense that companies are still seeing value out there. There was a good amount of merger activity in a diverse set of sectors. You had HSP in the aforementioned healthcare group to be swallowed by PFE. In the rejuvenated software space ADVS will be engulfed by SSNC and in the aerospace arena XLS will be taken out by HRS. What seems to have become a tradition in recent years all 3 acquirers gapped UP as well.