ChartSmarter Friday Game Plan 6/17/16

Markets recorded nice comebacks Thursday and I could probably just cut and paste this line into the first paragraph every night. The utilities and staples led the way (by the way over the last one year period the XLU and XLP are higher by 23 and 15% respectively, well in front of all the other major S&P sectors). With the world swimming in negative yields these names have a nice allure to portfolio managers. The utilities on a 6 month basis have more than doubled their closest competitor as the XLU has gained 19% compared to the XLE 9% advance. The rally after 11am was broad with the only one of the major sectors to fall was energy. The more defensive Dow has been quietly leading and did so today with an advance of .5% (it was the only one of the big 3 major indexes to end higher last week by .3%). Traditionally the Dow will lead toward the end of a bull run as investors are hesitant to let go of the blue chip safety names. The S&P 500 did reverse almost 30 handles intraday and did record a bullish engulfing pattern but CLOSED right at 50 day SMA resistance. The Nasdaq finished 67 points off its lows for the day and for the second time in the last 3 sessions traded below its now upward sloping 200 day SMA intraday only to CLOSE north of it. For the week headed into Friday the Nasdaq is lower by 1% and the S&P 500 by .9%. Let us see if tomorrow has any follow through. I for one can not stand to hear about how Brexit is going to affect the market. This latest selloff has little if any to do with it and will in the end probably be a non factor. It was great to see the averages take off despite a nearly 4% drop in crude. One thing for sure is peoples need to work off stress, whether they are in the markets or not, and the chart of PLNT which we profiled below in our Friday 6/3 Game Plan looks like it wants 20.