ChartSmarter Friday Game Plan 7/15/16

Markets posted decent gains Thursday and shrugged off some early afternoon weakness and the Nasdaq rose .6% and S&P 500 by .5%. The Russell 2000 stayed on the sidelines higher by .1% (the Russell recorded a bearish gravestone doji candle today). The Nasdaq attempted to negate a bearish engulfing candle from Wednesday CLOSING just above intraday highs of that session of 5036, but came up just shy. Both the Nasdaq and S&P 500 are poised to hit 3 week winning streaks as the Nasdaq is higher by 1.7% and S&P 500 by 1.6% heading into Friday (Nasdaq also looking to outperform the S&P 500 on a weekly basis for the third straight week too). If tomorrow finishes near todays close it would mark the third consecutive week going out at highs for the week. The averages took their cue form the financial sector which was the best performing group Thursday with the XLF up 1%. Greatly responsible fro that was the earnings reaction from JPM before the bell which put the stock higher by 1.5% and intraday took out a 64.25 double bottom trigger. Materials, industrials and technology rounded out the top 4 winning sectors. Transports are getting back in the mix with the IYT taking out a 143.10 double bottom trigger on double average daily volume. Below is the chart of the Canadian rail play CP and how it was profiled in the Wednesdays Game Plan. The stock is up better than 6% this week headed into Friday, on top of the combined 7.5% move the prior 2 weeks. The staples and utility groups lagged and were the only two sectors to lose ground Thursday.