ChartSmarter Friday Game Plan 10/23/15

Markets scored big gains Thursday with the S&P 500 and the Nasdaq higher by 1.65%. A mid afternoon slow down looked like the indexes would possibly roll over but that never happened. Both benchmarks went out near session highs. The S&P 500 is quickly approaching its declining 200 day SMA near 2060 where many believe a roadblock will appear. A move through that level could leave to an even stronger move as those who positioned themselves on the short side will have to get out of the way and cover. The Nasdaq is pushing right on its 200 day SMA and the next few sessions should give us some indication if a year end rally is on the table. For the week both indexes are set up to advance for a 4th time in a row, and again with all 4 CLOSING right at highs for the week of course depending on how Friday goes. For the week thus far the S&P 500 is higher by 1% and the Nasdaq by .6%. Industrial and materials sectors were among the winners Thursday and the hedge fund titans are on a regular basis disclosing stakes in previously battered names in the group. Icahn came out recently with a stake in FCX and today Einhorn announced a position in X. Some transports we have not spoke about in awhile are acting well, suggesting a strong retail holiday shopping season may be upon us. UPS is outperforming rival FDX, and is looking for a 7th consecutive weekly gain, and up better than 2% heading into Friday it looks like a good possibility.