ChartSmarter Friday Game Plan 4/1/16

Markets finished off session highs Thursday, but there are some decent weekly gains still intact. The Nasdaq is currently outperforming the S&P 500 advancing 2% versus the S&P 500’s 1.2% gain heading into Friday (the small cap IWM is leading them all with a 3.2% weekly gain thus far) and if those gains hold up it would be the second consecutive week where the Nasdaq acts better than the S&P 500. My feeling is that this will continue and the tech benchmark will test the very round 5000 figure in April. Looking over the last two sessions the Nasdaq had an impressive tally of new 52 week highs with Wednesday totaling 82-13 and late Thursday the count was 21-5. More notable was the NYSE scores with Wednesday at 192-2 and Thursday by 71-2. As March comes to a close bulls can also point to the fact that this month was much calmer or complacent (the VIX in the low teens can attest to this) than the frantic action of both January and February, to both the up and downside. Low key, smooth behavior are hallmark bullish traits. Although todays action ended close to the UNCH line only 2 of the 10 major S&P sectors managed to wind up in the green, the utilities and healthcare. Not the sexiest of groups but it looks as if some of the healthcare plays are in the bottoming formation process, but some are ahead of others. Below is the chart of ZLTQ which we profiled in this Tuesdays Game Plan and it is now higher by 7% from the suggested entry.