ChartSmarter Thursday Game Plan 12/10/15

Markets reversed lower Wednesday following early morning gains. The Nasdaq took the worst of it souring 1.5%, settling near the very round 5000 figure. It recorded it first golden cross in years today, but it is now lower 4 of the last 5 sessions, with the one up move of course the powerful move last Friday after the employment number. Keep in mind this has been the leading benchmark and in general when rulers back off it is a time to slim down and raise cash. One can always reenter at a later time, but it is best to be prudent. Furthermore it is perceived that a healthy market is one where the Nasdaq is acting well as technology is seen as a risk on trade. The S&P 500 fell by .8% as it lost both its 50 and 200 day SMAs, the 50 day SMA for the first time since early October. The breadth has been spoken about ad nauseam and looking at the new high/new lows list last Friday one would have expected much better totals as the Nasdaq came in at 58 new highs to 73 new lows. The NYSE was even worse at 36/171. Tuesdays numbers came in with new highs of the Nasdaq at 29 to 134 new lows. The NYSE 22 highs to 298 lows. Under the surface there is plenty going on. Of course the NYSE is saddled down with the oil names. Speaking of the commodities there has been talk of how we will see a bottom once a major event takes place. That traditional theory has been debunked as Glencore events surfaced a few weeks back. Yesterday it was Anglo American. Today it was KMI suspending their dividend. For those on the East Coast up well before dawn in the premarket it traded in the mid 14s and today CLOSED up nearly 7%. As Gartman likes to say their is rarely one cockroach. Will there be more dominoes to fall? Of course no one knows but one would expect so. One name that looks good here is EGN which we profiled in our Tuesday 12/1 Game Plan. It completed a bullish counterattack pattern Tuesday off the very round 50 number. Below is the chart from that report with some updated annotations.