ChartSmarter Wednesday Game Plan 1/6/16

Markets ended bifurcated Tuesday but off session lows with the Nasdaq falling .2% and the S&P 500 gaining .2%. The best performing sector today were the utilities. Couple that type of action with the weakness in the banks and one has to wonder if the Fed is going to be as active as announced this year regarding interest rates. MS has been one of the real laggards in the group now off by 24% since recent 52 week highs this June and July when they encountered trouble with the round 40 handle. It achieved one weekly CLOSE above 40 ending 7/17, but then promptly lost ground 10 of the next 11 weeks and found support near the round 30 figure. I could not blame those looking to take a trade near the round 30 handle with MS however as if one looks left the round 30 number was support since taking it out the week ending 11/15/13 (one exception and bear trap was the week ending 4/11/14 which lost 6.3% finishing at 28.47 and 30 was quickly recouped the very next week). Below is the chart how it was presented in our Monday 12/14 Game Plan. Looking at others in the group some are catching up to the weakness in MS as GS is now lower by 20% from recent highs, C by 17%, and both JPM and WFC down 10% from the recent highs. JPM looks decent here technically as Monday it recorded a bullish hammer and todays doji candle registered a bullish harami cross.