ChartSmarter Wednesday Game Plan 12/16/15

Markets continued were Monday left off with powerful advances. They finished off sessions highs but the Nasdaq and S&P 500 gained .9 and 1.1% respectively. The Nasdaq did so without any help from its largest component AAPL which fell more than 1% Tuesday and it did meet resistance right at its 50 day SMA. All 10 of the major S&P sectors were higher today with energy, financials and healthcare shining. Energy was the beneficiary of a strong crude session as it seems one of the largest known short plays is beginning to unwind. Will it continue? Of course no one knows and with the big Fed decision looming Wednesday it should be an exciting day. An interest rate increase, the first in 9 years, would strengthen the greenback which in turn should put some pressure on the dollar which should depress crude. The stocks in the sector have for the most part been bucking an oil drop, so tomorrow should be draw important clues. No for the rest of the market, oil and the benchmarks have kept strong correlations for the most part recently, so a drop in oil Wednesday could have an impact. Financials could skirt any potential market vulnerability as they would benefit from rates increasing. Or will they? A quick peek at JPM shows how spikes on the first Friday of the last two months after employment data were strong, up 3 and 3.2% on 11/6 and 12/4. Notice however both sessions intraday highs were never surpassed. This month is only half done and perhaps some certainly in the Fed language tomorrow afternoon could put an end to that type of action and give the stock some room to breathe to the upside.