ChartSmarter Tuesday Game Plan 10/27/15

Markets traded in a very narrow range Monday as it awaits a barrage of earnings reports this week with many eyes on AAPL tomorrow afternoon. The Nasdaq inched ahead by .1%, despite AAPL’s 3.2% drop, and the S&P 500 fell by .2%. Energy and materials were the laggards and its seems for the moment the market has turned away from the correlation with crude. Healthcare gave the Nasdaq a bump as the IBB rose for a third consecutive session. CELG is attempting a 5 week winning streak and today recaptured its 50 and 200 day SMAs, and many would see it now just below a 127.08 double bottom pivot point, but the trigger made on 9/17 is below 50 day SMA and that makes the pattern failure prone. The less volatile XLV is battling with the round 70 number and the last 4 weeks it has CLOSED right at the top of its weekly range, a bullish sign. More conservative JNJ and PFE make up almost one fifth of the ETF. The energy scenario is becoming a bit worrisome for the bulls. WTI did meet resistance at its 200 day SMA and failed to CLOSE above the round 50 number. It is now lower 9 of the last 12 sessions and last Friday undercut its 50 day SMA. Volume today was strong further dampening the mood. Looking at some energy ETFs like the XLE, OIH or XOP did recently sport good looking bullish flag formations. Those patterns are now becoming a little long in the tooth. Concerning is some of the moves in the semiconductor space, AVGO news did not help today, as some recent breakouts have fallen apart quickly like IPHI, very often a bearish sign. In our Friday 10/16 Game Plan we looked at IDTI that had a promising cup base trigger of 24.52. That pivot was never taken out on a CLOSING basis, a very important sign and a topic of a post we wrote over the weekend. Intraday it was above last Friday and reversed recording a bearish dark cloud cover candle.