ChartSmarter Monday Game Plan 7/13/15

Markets concluded the volatile week Friday with sizable gains with the Nasdaq faring best up 1.5%. Even with that impressive move the benchmark still fell for the week, albeit by just .2%. It now has finished lower 6 of the last 7 weeks, yet only one CLOSED down more than 1%. It also finished just beneath the round 5000 handle and almost precisely where it closed Tuesdays session after a wide 100 handle swing intraday. YTD it remains higher by 5.5%. The tone for the index will be pulled depending on its top component AAPL which makes up almost 8%. Notice this week the stock found CLOSING support right at the round 120 handle Thursday, just above its 200 day SMA and a breakout from a cup base pivot point of 119.85 on 2/5. The bearish engulfing candle on 4/28, after its most recent earnings release (it REPORTS next Tuesday as well) from all time highs still concerns us and notice how both APPL and the Nasdaq’s 50 day SMA has begun to slope lower ever so slightly and that will be something to focus on this coming week. The S&P 500’s 50 day SMA is tilting a bit to the downside as well but to its credit is clutching its 200 day SMA. After all was said and done this crazy week, it CLOSED less than one handle off the previous weeks finish and is clinging to a .9% advance for 2015. Of course as the energy complex continues its descent it has less of a drag on the overall S&P 500, but crude falling by greater than 7% this week certainly is having an impact. We still think WLL, which we profiled in our Thursday Game Plan, may offer some of those looking to bottom fish in the sector the best chances of success on a risk/reward scenario.