ChartSmarter Wednesday Game Plan 3/25/15

Markets for a second straight session closed upon their lows which are bearish characteristics. Both the Nasdaq and S&P 500 fell for a second consecutive session. Perhaps if one wants to take a positive out of Tuesdays session one can look to 3 of the worst 4 performing sectors on the day were defensive with consumer staples, healthcare and utilities lagging. Energy was not surprisingly the other group among the four. One could make the argument that the Nasdaq is making a very long 15 year double top and time will tell if that occurs. There is a flood of money still making its way into stocks and historically that is a negative. We went into cash today as we do not like the indexes actions the last couple days, the IBB which has done a lot of the heavy lifting for the Nasdaq CLOSED upon its lows for a third straight session, and one not getting much discussion is the transports. We had a warning from UPS earlier this year and Monday and KSU did just the same Monday slicing 8% off its value and undercutting both its 50 and 200 day SMAs. It fell 5.2% on 1/23 after its last earnings release. Going forward one has to wonder what kind of effect new regulations will have on the groups earnings after a number of oil derails recently. The IYT looked as if it was carving out a bullish inverse head and shoulders pattern but that seems to have its destination “altered”.