ChartSmarter Thursday Game Plan 3/17/16

Markets acted bullishly Wednesday with the majority of the session swimming in the green with the exception of the early afternoon hours as investors attempted to anticipate what Yellen would say. At the end of the day the Nasdaq rose .75% and the S&P 500 tacked on .6%. The S&P 500 reclaimed its 200 day SMA and now sits just 5% off recent 52 week highs. It is looking for a 5th consecutive up week and that would be a first since the 6 week winning streak between the weeks ending 10/2-11/6/15. The week ending 11/13 fell 3.6% and that was followed by 3 straight weeks of very taut CLOSES, all within less than 3 handles of each other. It the proceeded to sink almost 300 handles to intraweek lows near 1812 the week ending 1/22 which happened to be a successful tests of the lows the week ending 10/17/14. Energy and materials led the way Wednesday (the only major S&P 500 sector to fall today was healthcare), which they have for a good portion of this rally and perhaps the comments made that it is weak leadership will begin to dissipate. There is clearly rotation being seen into the group, but the bears could make a valid argument that energy tends to lead in the final stages of a bull market. If strength begins to falter prepare to hear that sentiment almost incessantly going forward. But hedge funds are piling into the names, take that for what its worth, and the Feds dovish statement on interest rates will not do much for the dollar bulls which should be a nice steady breeze behind the oil groups back. Can you hear the gushing sounds, pun intended? A bit perplexing continues to be in the retail names which did not partake in todays rally. Stocks that acted sluggish today on a decent tape were KORS RL DSW FOSL and below is DECK which we profiled in our Wednesday 3/9 Game Plan.