ChartSmarter Friday Game Plan 6/3/16

Markets once again demonstrated excellent relative strength, by opening poorly upon lows and going out on highs and it was once again the Nasdaq that led the way with a gain of .4% (the tech rich benchmark is now on a 7 day winning streak and more importantly everyone of them CLOSED at the top of the daily range. The S&P 500 did manage do CLOSE above the 2100 level and the key now would be to see some follow through in the coming days. For the week heading into Friday the Nasdaq is looking to outdo the S&P 500 for a fourth consecutive week up .7% compared to the S&P 500’s .2% advance. Healthcare by far was the best performing group Thursday up 1.2%, doubling the gains of the second best sector which were the materials which rose .6%. The XLV has now gained 7 straight sessions and took out a 72.21 cup with handle trigger today. The ETF is a more conservative fund with the likes of JNJ, MRK, PFE, BMY and a name like UNH which has broke above a double bottom trigger of 134.10 on Wednesday and demonstrated good follow through today. However a good sign is the inclusion of the some of the smaller names in the group acting strong and below is the chart of MNTA which we profiled back in our Tuesday 4/26 Game Plan with a potential break above the round 10 figure in a bullish ascending triangle formation. It has since rallied more than 20%. Energy once again was the biggest drag among the major S&P sectors as the XLE dropped fractionally by .1%.