ChartSmarter Monday Game Plan 7/20/15

Beginning to sound like a broken record, but once again the Nasdaq showed precisely why its the undisputed leader as it gained .9% Friday, largely due to a very well received earnings report from GOOG. For the week the index ramped up 4.25%, its best weekly gain since the week ending 10/24’s 5.3% advance. On a YTD basis it is now up double digits at 10%. The S&P 500 added .1% Friday and 2.45% for the week and in 2015 is now higher by 3.3%. It is now back above a prior ascending triangle pattern that took shape between late February and mid May, breaking out above the 2120 level on 5/14. That move lasted only 7 days before receding back into the pattern, a bearish trait as we know the best breakouts will work right away. It has recharged its batteries and now sits just below a good looking double bottom pivot point of 2130. Earnings are expected to have a big impact on the markets direction as earnings season continues to up its pace. This coming week will be affected by some big biotechs with CELG, BIIB, ILMN and ABBV to name a few. Big tech giants AAPL, MSFT, AMZN and GPRO release numbers. Transports will be represented by CNI, CP, UNP, ALK and LUV reporting. Perhaps some foreshadowing for the group came with KSU jumping 6.5% Friday, its first positive reaction in ’15 after losses of 2 and 5.2% on 4/21 and 1/23. Notice how it was stopped at the round par figure however and that will be a key number to watch going forward. Peer JBHT was not so fortunate Friday as it was UNCH on a volatile session although it did find support at its 200 day SMA. That group is normally a very accurate barometer on economic growth and it will be interesting to watch this week how peers speak as they report. Retail sales fell this week after an expected gain, oil has been routed this month to the tune of 11%, GDP figures are soft. These factors indicate to me we may not be ready for an interest rate hike, every from the very depressed levels they are now at.