ChartSmarter Thursday Game Plan 6/4/15

Markets finished in the black Wednesday but off session highs. The Nasdaq finished higher by .4% and the S&P 500 by .2%. Bonds have been under assault with yields surging giving more of a reason for equities to rise. From a contrarian perspective today brought forth another clawing bear in Louise Yamada, a respected technician, who pointed out the lagging transports could potentially wreck havoc on the Dow. Is Dow Theory still relevant today? That argument for another day, but a sector that has been on the move recently to keep an eye on are the finnies. The financials continue to make headway with the XLF taking out a flag pattern today. Its daily chart looks a bit wide and loose which are hallmark bearish traits, but a peek at its weekly chart shows very taut trading. During a 5 week period between the weeks ending 4/3-5/1 the ETF CLOSED within a .21 range. The 3 weeks ending between 5/8-5/22 all finished even tighter, all within just 16 cents. The funds largest component BRKB is attempting to shrug off a 3 week losing streak and is lower 14 of the last 20 weeks. Even with that weakness it is just 6% off recent 52 week highs. The stock is below both its 50 and 200 day SMAs but it is finding support on the bottom line of a bullish falling wedge.