ChartSmarter Friday Game Plan 5/15/15

Markets rose handsomely Thursday as the Nasdaq rose 1.4% and the S&P 500 by 1.1%. For the week heading into Friday the S&P 500 is higher by .2% and the Nasdaq is higher by .8%. Volume trends overall this past week have been light. The S&P 500 is at an inflection point here as the index is resting right upon the 2120 level which represents the top horizontal line in an ascending triangle pattern. The 2120 has been traded above on an intraday basis 4 times now in a formation dating back to 2/25. Today was the first CLOSE above that figure and the break above should target a move to the 2200 area by measuring the width of the triangle at its largest point. Looking on its weekly chart if the benchmark can finish near this area Friday it would mark the fourth consecutive week with it CLOSES at the very top of its weekly range, a bullish sign. Gains were broad Thursday with 6 of the top 10 major S&P sectors closing higher by 1% or more. Three of those 6 were from your traditional defensive sectors such as healthcare, consumer staples and utilities. Some best of breed casual dining plays reported earnings today and were not part of the euphoria today. SHAK a name that came public in the end of January reversed 20% from intraday highs to close lower by almost 5%. JACK fell for the first time in its last 4 after numbers were reported last night dropping 4.5% today. Prior releases rose by 7.4, 4.8, and 10.5% on 2/18, 11/19 and 8/7. Below is a good example of why price CONFIRMATION must be achieved. Below is how we examined JACK in this Mondays Game Plan with a buy stop above the 50 day SMA. Those who front ran the pivot were left with a bad taste in their mouth, pun intended.