ChartSmarter Wednesday Game Plan 9/8/15

Markets began the holiday shortened week with a bang as the Nasdaq rose 2.7% and the S&P 500 by 2.5%. Volume cooperated Tuesday as it was elevated from Friday’s numbers, although lets remember that was an easy comparison given many traders were already off to their Labor Day destinations. The acronym Merger Mondays from times past rang true today as some activity in the energy and media space. We have spoken at length and perhaps ad nauseam about the confidence we have when the Nasdaq outperforms the S&P 500. It shows a risk on attitude and the genuine health of technology is a good sign. Last week was the first week in the last 7 in which the Nasdaq “outperformed” the S&P 500 as it LOST 3% compared a 3.4% drop for the S&P. We would become more bullish if that can stretch into a multi week streak. PCLN and AMZN were just a couple of examples of why the Nasdaq had such a robust session (interesting was the action in NFLX which has traded very taut up until the last 2 1/2 weeks. Today it lost ground on a very benign tape and has produced 3 consecutive very well received earnings reaction between 17-18% on 7/16, 4/16 and 1/21). Both names have 50 inclining 50 day SMAs which are above their 200 day SMAs avoiding the incessant “death cross” conversation of weeks past. Another tech name acting well today was FIT which rose 11.3% and just the fourth time in the last 15 sessions. Below is how we examined the chart in out Wednesday 9/2 Game Plan.