ChartSmarter Thursday Game Plan 10/15/15

Markets closed near session lows for the second straight day to start the week. The Nasdaq fell .3% and the S&P 500 by .5%. The Nasdaq met resistance Monday at a downward sloping 50 day SMA with a candle resembling a shooting star, the same exact scenario which occurred on 9/17. Interestingly the consumer groups, both staples and discretionary, were among the worst performers of the day lower by 1%. Of course the WMT news, which sent the stock shivering lower by 10%, was the catalyst and notice how it at least for today found support at the round 60 handle. It is the second high profile yield play to get hit this week with LLY on Monday, underscoring trader jitters. WHR, the chart below from our Wednesday 9/14 Game Plan, sliced the round 160 figure on 9/22 and fell a quick 16 handles only to retest that descending triangle breakdown almost precisely last week and is on the move back lower. Other concerns are the housing market and peeking at the ITB, which is more of a pure play on the builders as opposed to the XHB, is lower by 4% this week already. This is a group many claim to be leading but that looks fragile. A tech best of breed tech play PANW is 18% off recent all time highs and is making lower highs and lower lows after resistance at the very round 200 figure in late July, a bounce at the 140 handle on 8/24, making a lower high at the round 190 figure on 9/21. It remains to be seen if the 200 day SMA will hold if tested like it did in late August. When the generals speak, you always pay attention. Or have I stuffed this paragraph chock full of negativity which can be a good thing from a contrarian perspective?