ChartSmarter Monday Game Plan 9/28/15

Markets took an unseemly turn Friday after starting off the day well into the green. The Nasdaq’s 1% gain early on reversed to finish with a 1% drop. That drop now has the tech rich benchmark in the red for 2015 by 1%. The biotech group was responsible for the vast majority of the U turn as the group has been decimated with the IBB and XBI down 13 and 15% for the week respectively. The sector has been one of the last to prop up the benchmarks and its breakdown this week can spell trouble for the overall markets. For the week the Nasdaq, which is on the verge of a death cross, fell 2.9% and if not for a measly 2 handle gain on Monday it would have lost ground everyday this week. The S&P 500 lost half of what the Nasdaq did falling 1.4%. The markets are displaying an affinity for the boring defensive plays. In Friday’s Game Plan we spoke of CAG, and today we look at a name that was also in this past Thursday’s Game Plan, CLX. CLX now looks to be well on its way to being pulled like a magnet toward its cup base pivot point of 119.85. The stock rose 2.4% this week showing excellent relative strength and a breakout would correspond with an all time high. CLX is a real leader in the space as it rests less than 3% off recent all time highs, whereas PG sits 23% off its own. Unless one has a mandate to be in the market on the long side, one would be prudent to sit on the sidelines. Cash is a position.