ChartSmarter Thursday Game Plan 5/21/15

Markets traded in a tight range near the UNCH mark between 11-2 Wednesday then saw a brief move higher before the high wore off with benchmarks finishing little changed. The Nasdaq recorded a doji candle today with its intraday high near the round 5100 figure and highs made back on 4/27 which produced a bearish engulfing pattern. A doji candle is one that suggest strength in the preceding direction could be waning. The index is also nearing the top of the upper Bollinger Band which occurred in mid March and early April which led to declines of 200 handles each time. Action in the meaningful transport sector was ugly today. The IYT derailed almost 2%, pun intended, Wednesday in the most active volume of the year. The airlines were the culprit today, although both rail plays to the north, CP and CNI are now in bear market mode down more than 20% from recent 52 week highs. Getting back to the airlines names AAL, UAL and LUV are all now below their 200 day SMAs and in bear market mode as well. Perhaps the recently introduced airline ETF, with the clever symbol JETS, called the top in some of these plays. As the markets try and decide which way they want to go, the utilities which were the best performing sector Wednesday, are basing and the XLU looks like its rounding out a nice bottom. The ETF is on a 5 day winning streak, its third of its kind in 2015 with two 6 day winning streaks this year on 1/13-21 and 3/27-4/6. Maybe they are ready to wake up from a long sideways hibernation spooning the 200 day SMA.