ChartSmarter Monday Game Plan 4/18/16

Markets put in a very positive week in my opinion with the Nasdaq gaining 1.8% and the S&P 500 rising by 1.6%. More importantly was the action following the flag breakouts for both of the aforementioned benchmarks. The Nasdaq on a CLOSING basis finished the last 3 days of the week all within just 9 handles (Fridays intraday range of just 25 handles was the second narrowest of 2016 behind the 23 handle range of 3/15). The S&P 500 CLOSED the last 3 sessions all within just 2 handles. On a YTD basis the Nasdaq is now lower by only 1.4% while the S&P 500 is in positive territory to the tune of 1.8%. Is the taut range between Wednesday-Friday everyone waiting on pins and needles for the reaction to the Doha meeting this Sunday regarding crude? The correlation is softening somewhat so I remain skeptical. I believe it to be good consolidation after the flag breakout, but Monday we will know for sure. Empirical data we can be certain of lends to higher prices going forward as outflows from stock funds stood at $4.8 billion this week, and $2 billion of INFLOWS into bond funds. In fact outflows from stock funds have been negative 12 of the last 15 weeks and inflows into bond funds have been positive 14 of the last 15 weeks (h/t @ukarlewitz). This week did separate itself as the risk off names seem to be in retreat with the likes of CPB and DPS lower by 3.4% and MKC down 5%. The financial group recorded the best weekly gain of the major S&P sectors higher by almost 4%. Many believe a market can not remain in rally mode without their participation. This week did bring some nice gains after earnings with C higher by 11%, BAC 8.7% and JPM by 7.1% (even with softness on Friday) but keep an eye on some international plays as well. Below is the chart of Indian name HDB which appeared in our Thursday 4/7 Game Plan.