ChartSmarter Monday Game Plan 6/6/16

Markets concluded the week Friday halving morning losses after an ill received jobs report at 830am. Their rebound does leave one conflicted whether it really shrugged off the bad news or others will argue the report was not as bad as it had seemed. We care only about PRICE action and looking at the Nasdaq it did end a 7 session winning, however all 8 have CLOSED in the upper half of their daily ranges. It did rise a scant .2% this week outperforming the S&P 500 for a fourth consecutive week and a finish above Thursdays intraday would confirm a breakout above a bullish inverse head and shoulders formation with a slanted neckline. Of course it has the very round 5000 figure to deal with just above. The S&P 500 was UNCH on the week (very tight CLOSES with 3 sessions finishing with a 2099 handle showing just how tough the tug of war between bulls and bears are at the round 2100 figure), a decent achievement given the prior weeks 2.3% advance and all 5 days CLOSED in the upper half of their daily range. On a YTD basis the S&P 500 is higher by 2.7% while the Nasdaq is still lower in ’16 down 1.3%. For the week it was a bifurcated week with the defensive utilities, healthcare and staples leading the way higher by 2.6, 1.6 and 1.1% respectively (the XLU took out the very round 50 number for the first time Friday and a 49.98 cup base trigger. Was it a reaction to the anticipation of rate increases dropping after the jobs number Friday morning, or just the continuation of a long series of higher highs and lows dating back years now? The TLT spoke loud and clear with only the third time since the week ending 3/20/15 did the ETF score a gain of 2.6% or better. The last 2 times it occurred the weeks ending 3/20/15 and 12/11/15 a 3 week losing streak followed. Will it happen once more? Healthcare names to continue to march higher and some best of breed names are at all time highs including UNH which recorded a solid break above a double bottom trigger of 134.10 (below is chart how it appeared in our Friday 5/27 Game Plan) on Wednesday and has shown good follow through since. Remember the best breakout tend to work out right away.