ChartSmarter Tuesday Game Plan 6/9/15

Markets fell to begin the week Monday with leading Nasdaq taking the brunt of the selling. It dropped .9% and finished just above the round 5000 mark and sitting right atop its 50 day SMA. When the dominant index falls sharply there is reason for concern. The S&P 500 fell for a third consecutive session and has been underneath its 50 day SMA for 3 straight sessions as well. It looks as if it wants to test its rising 200 day SMA. If it can not recoup its 50 day SMA quickly, that scenario seems more likely as since March piercings of the 50 day SMA to the downside have been short lived. The shortcomings on the Nasdaq today came courtesy of the indecisive semiconductors. The SMH fell for a 6th consecutive session and it too undercut its 50 day SMA Monday. The weakness following an unorthodox 58.57 cup base trigger on 5/27 where the ETF gained almost 4% in double active trade is worrisome. The best breakouts have a tendency to work out right away and unsurprisingly the round 60 handle was stubborn in its resistance on 5/29 and 6/1 with no CLOSES above it. The Dow went negative for 2015 today and the ailing transports fell 2%. Many in the rail and airline space are in or teetering on the brink of bear market mode, but some truckers are doing their best to hang in there. JBHT which we profiled in last Mondays Game Plan (chart below as it appeared that day) is still above its 5/29 bullish hammer. See if the chart can “navigate” its way higher, but the majority of stocks are now swimming beneath both their 50 and 200 day SMAs. You can almost feel the shaking legs and shoulders of the fewer and fewer stocks attempting to hold this market up.