ChartSmarter Thursday Game Plan 8/6/15

Markets were up nicely Wednesday but off session highs. The Nasdaq was higher by 1.4% in the early going and sliced into that gain in the afternoon to finish up .7%. The S&P 500 rose .3% and has closed right around the round 2100 figure all week which aligns with its 50 day SMA. That line has is now slanting lower and has made lower highs and lower lows since late June. If this lackluster activity continues through the summer which would not be uncommon one can anticipate a bearish death cross as the 50 day and 200 day SMAs are beginning to gravitate toward each other. Would you believe if I told you energy was the worst performing sector Wednesday? Perhaps I should just cut and paste that last sentence into every first paragraph of my blog going forward. Healthcare was one of the best performing groups today, and like energy weakness, the healthcare group has been just as strong as it has been weak. Remember trends will persist for a lot longer than one believes. Below is a detailed chart of the ETF IBB which has tested the round 400 number and been turned back. Wednesday it reversed at the round 390 figure. The top 4 components CELG AMGN GILD and REGN in it all reacted well to earnings releases in the last couple weeks. Only the fifth largest component BIIB disappointed but it was rallied more than 10% off the round 300 handle almost precisely from 7/24.