ChartSmarter Monday Game Plan 6/22/15

Markets took a breather Friday and finished near session lows with the Nasdaq losing .3% and the S&P 500 .5%. The Dow which we rarely follow lost .55% and for the fourth time this week and 6 of the last 8 sessions has gained or lost triple digits. For the week the Nasdaq advanced 1.3%, ending a 3 week losing streak and the S&P 500 rose .7%. On a YTD basis the Nasdaq still maintains a commanding lead with an 8% jump compared with the S&P 500’s 2.5% . Volume was heavy due to quadruple witching Friday. Can one blame Fridays weakness of the witching? Looking back the Nasdaq GAINED ground 6 of the last 8 times, so perhaps one can worry that Thursdays move may turn out to be a bull trap as the Nasdaq and S&P 500 fell back below their breakout levels from ascending triangle patterns. We will maintain our bullish stance for the time being. The very strong software market is witnessing some sub sector bifurcation with security names flourishing and “old tech” names floundering. Stocks like CYBR, PANW and FTNT rose 10.2, 4.7 and 4.6% respectively while names like ORCL slumped 6.2% this week undercutting its 200 day SMA. ADBE disappointed after reporting on Wednesday but fell marginally for the week although it still is wrestling with the round 80 handle on a CLOSING basis. Even some of the lagging security plays are seeing some nice rebounds as of late. QLYS which we profiled in our Monday 5/11 Game Plan, not long after a dreadful earnings report losing 33% on 5/5 is looking like that may have been a one off event and could be excused as it rose 4 consecutive times prior. This week it rose everyday and for the week popped almost 14% for its 5th gain in last 6 weeks. Below is exactly how the chart appeared in our 5/11 Game Plan.