ChartSmarter Monday Game Plan 2/29/16

Markets ended Friday on a lackluster note, but for the week another productive performance was put in. Is the move transitory or not? Of course no one knows for sure but sentiment which became so negative is easing a bit and with many still predicting a return to the downtrend we like to look at what happens if things go right. We spoke this week on Thursday about the possible emergence of the semiconductors as a group that looks like it may be the beneficiary of some rotation (the SMH did take out the very round 50 number this week and on the weekly looks to be shaping a symmetrical triangle that started last May). Looking at the XLE in Tuesdays Game Plan we highlighted the potential move to 60 and it has carved out a decent looking ascending triangle and a CLOSE north of 58.75 would put the bulls in control. The Nasdaq has gained ground 8 of the last 10 sessions and before Friday all 7 finished at the very top of their daily ranges. Friday it recorded the second tightest range of the year thus far (Mondays tally at just 30 was the tautest), just 39 handles top to bottom, at a downward sloping 50 day SMA which may signal some exhaustion of the recent rally. The tech heavy benchmark tacked on another 1.9% this week on top of the prior weeks 3.85% advance, although bears may point to lower volume on both. Below is the chart where both bulls and bears can make their bullet points. Looking at another group that might get the Nasdaq above the weekly 38.2% hurdle is the software sector. Some names began to show some life in the beaten down group. NUAN is on a 3 week winning streak up 16% on the process after delivering earnings on 2/10 rising 5.4%. PANW jumped better than 16% this week after earnings Thursday, its best weekly advance ever, although it still remains 26% off recent 52 week highs. ELLI has soared 28% the last 3 weeks after a well received earnings report on 2/12 and SPLK has jumped 30% the last 2 weeks after finding a bid at the round 30 number on 2/11. Short covering as the 3 aforementioned names above, with the exception of ELLI, are still well of highs or the start of some positive sector rotation?