ChartSmarter Wednesday Game Plan 9/23/15

Markets recorded a lukewarm rally off early afternoon lows with the Nasdaq falling as much as 2.3%. That being said it still fell the most and markets are considered healthier and more vibrant when the tech heavy benchmark outperforms. The Nasdaq at session lows went negative YTD, after being up nearly double digits earlier in the year. Its finish put it right near the UNCH mark for 2015. The S&P 500 did slip below a bearish falling wedge pattern and it remains to be seen if this will turn out to be a bear trap as the bulls enduring that same scenario on 9/9. All of the 10 major S&P 500 sectors finished the session underwater and the utilities “performed” the best. Some biotech stocks were still under pressure and the healthcare group as we have been mentioning is one to keep an eye on. If the “generals” retreat, and the market loses another leading group things could get even uglier. AGN which we profiled in last nights Game Plan (chart below) and for the first time in more than 3 years undercut its 200 day SMA. This is a widely followed name in the group and can be considered a barometer for the sector. Remember we are running into a seasonality period that is not very kind and as @ryandetrick pointed out over the weekend this week which is the 38th of the year begins a 3 week period which over the last 10 years is the worst performing 3 of the year (weeks 38-40). Of course October is right around the corner as well and we remember what happened last year. However in October 2011, with all the talk we hear about retesting the lows of August, the week ending 10/7/11 reversed and rose 2.1% and the markets took off from there. Intraweek it undercut the lows of 8/12 and CLOSED back above (the 3 week period between weeks ending 7/29-8/12 lost 13%). That was the last occasion the S&P 500 was below its 200 day SMA for a lengthy period of time. If that happens again in the next few weeks we have something to compare it to.