ChartSmarter Thursday Game Plan 5/5/16

Markets were once agin underwater all session but did manage to finish slightly off the lows. The Nasdaq is now lower 9 of the last 10 sessions and is now having memories of the last instance that occurred between the days of 12/30/15 and 1/13. That prior period was much more volatile with the 1/13 day declining 3.4% alone. This recent selloff has lost less than half of the January’s roughly 11% decline during the 10 day period. Wednesday the Nasdaq was the softest performer of the big 3, lower by .8% compared to the S&P 500’s .6% drop. The very positive action in the utilities, the best acting sector today rising 1.1%, has put a stamp on the risk off feel which has been ongoing for 2 weeks now (the defensive staples group was the only other sector to gain today). The XLU which shied away from the very round 50 number the weeks ending 4/1 and 4/8, as it did dating way back to the week ending 1/30/15, now has the look of a nice cup with handle base and an entry above 49.98 should be purchased. In a world where investors are clamoring for income, the fund sports a juicy dividend yield of 3.3%. WTI fell for a third consecutive session (following last Fridays doji candle) and recorded a bearish MACD crossover and the last time that occurred it went on to 9 day losing streak between 3/22-4/4 which was pulled to its rising 50 day SMA. Volume has been elevated and has accelerated with each session this week thus far. Speaking of defensive play below is the chart of HAIN which we highlighted in our Thursday 4/7 Game Plan and today it recorded its first positive earnings reaction in its last 5.