ChartSmarter Friday Game Plan 9/11/15

Markets spent the vast majority of the session in the green and ended in the upper half of their daily ranges with the Nasdaq up .8% and the S&P 500 by .5%. For the week heading into Friday the Nasdaq is higher by 2.4% and the S&P 500 by 1.6%. Healthcare led the way Thursday with the IBB rising almost 2%, albeit in light trade. The groups long ascent may be coming to an end as the 50 day SMA has begun to slope lower. Is the recent rally a dead cat bounce that I believe most of the benchmarks are experiencing as well? Looking over hundreds of charts a day, there are multiple examples of why I feel more softness is in the future. Can one say an economy is vibrant with select rails off close to 30%. Paper stocks in the same ballpark. Of course energy has been slumping for some time now. Earnings are filtering in and some and some negative surprises were reported from some sector leaders. LULU for one fell more than 16% in huge trade. It had been trading in between a range of the 60-70 round numbers. Another retail name that reported this week, MW, which has been the subject of merger rumors, fell 12% Wednesday and another 3.6% today. Of course this sector is a very big chunk of the economy as the consumer makes up 2/3rd’s of GDP. Even the discount players like DG and DLTR firmly in correction mode. MTH once a homebuilder leader sank almost 9% in gigantic trade.