ChartSmarter Monday Game Plan 3/14/16

Markets started firmly in the green Friday and maintained their altitude, something they were unable to do the day before, although they did make a sweet comeback into the close Thursday. I am going to dub this the “Trump Market”, whatever is thrown at it does not seem to matter. There have been mentions of the 61.8% fibonacci retracement on the S&P 500 at the round 2000 number, I saw a post on the McClellan Oscillator being the highest it has been in 7 years this morning, the comments of the utilities and staples leading the rally, etc. All that matters in the end as always, is price action and the message being sent is positive. Now of course both Trump and the markets can potentially be derailed in quick fashion, but the benchmarks resiliency has to be admired and respected. The Nasdaq led the way Friday with a jump of 1.85% and it has now advanced 4 consecutive weeks with the last 5 CLOSING bullishly in the upper half of the weekly range. For the week it rose .65% and that put an end to its 4 week outperformance compared to the S&P 500’s 1.1% gain. The S&P 500 faces yet another challenge as it finished Friday right at its declining 200 day SMA. On a YTD basis the S&P 500 is still strongly outdoing the Nasdaq as it is now down only 1.1% and the Nasdaq lower by 5.1% thus far in ’16. Energy and financial jostled for the strongest sector Friday with both up in the 2.7% range. The oil/stock market correlation continues (crude is down just less than 2% YTD, uncannily close to the S&P 500’s tally for ’16) and the resource rose % for the week. People do seem to be getting giddy as calls that the “bottom is in” are getting deafening. Lets see if there will be a “crude awakening” next week. PE CLOSED above the round 20 number taking out a cup base trigger of 20.43. Another best of breed play we profiled in this Thursdays Game Plan RSPP took out a cup with handle pivot point of 27.42 today jumping 8%. Volume on both PE and RSPP however was far from gushing. Below is exactly how we presented RSPP in our Thursday report.