ChartSmarter Friday Game Plan 1/15/16

Markets recorded a nice rebound Thursday, seemingly long overdue and from many on social media streams one would be almost convinced a short term bottom is in. True, Monday and Tuesday finished well off the lows, Wednesday was dreadful and today both the Nasdaq and S&P 500 recorded bullish harami candles. Of course with the long real bodies Wednesday, made todays candles a bit easier to create. That being said the bulls seem to be making a stand here. The Nasdaq seems to be getting some of its mojo back as it gained 2% today, outperforming the S&P 500’s 1.7% advance. For the week heading into Friday the Nasdaq is lower by .6% and the S&P 500 is flat. Looking at the leading sectors of the day, the worst performing oil group led the way higher by 4%, with WTI trying to stay afloat at the round 30 number. The round numbers have not been kind to the commodity as the 50 handle saw a bearish shooting star candle at precise 200 day SMA resistance on 10/9. The 40 figure was support between mid November and early December before giving way and we now rest at the 30 handle. Will it tread sideways here before undercutting the number and head to the 20 number like many have been calling for like GS and MS. I believe Gartman is calling for $10. Utilities must be kept on ones radar as they were part of the broad advance Thursday, and now trade right at a bullish cup with handle trigger of 44.04. Besides there obvious appeal regarding yields, they have been acting well on both up and down tapes. On the weekly chart below one can see the bullish inverse cup with handle formation.