ChartSmarter Tuesday Game Plan 5/26/15

Markets declined in the final hour Friday leaving the indexes slightly lower heading into the holiday weekend. The S&P 500 dropped .2% and the Nasdaq was UNCH. For the week the Nasdaq gained .8% and the S&P 500 by .2%. Gains here at home were dwarfed by overseas moves of 8% for China, 4% for Japan and 3% for moves on the DAX and CAC 40. On Friday although the selling was muted all 10 major S&P 500 groups were lower. Health care and consumer staples were the worst performers. Sectors in the news once again were the transports. The airlines were hit and the fourth week of trading for the new exchange traded pure play fund, JETS, saw it lose altitude to the tune of more than 7% in bulging trade. The IYT more concentrated on rail names, but which does include others in the trucking group, etc. lost 2.2% in the largest weekly volume in the last 7 months. Names like NSC are nearing the bear market threshold lower by 19% from recent all time highs. That particular name fell below a long descending triangle pattern whose lower horizontal line aligned roughly with the round par figure. As certain groups fail, others spring back to life and it seems the biotechs are on the ascent. The IBB is on a 7 day winning streak and higher 13 of the last 16 sessions and is now sniffing out a double bottom trigger of 368.35. GILD, the funds largest component, has been responsible for a good deal of the gains as it has risen 4 of the last 5 weeks. Volume has not been supportive of the move but the price action has been hard to dismiss.