ChartSmarter Monday Game Plan 7/18/16

Markets ended the week on a listless note with both the Nasdaq and S&P 500 finishing .1% lower, and the Russell 2000 rose by .2%. The Nasdaq is just above a double bottom trigger of 4980 and CLOSED above the very round 5000 figure. Is it pausing here after a gigantic run or looking ready to receded. We highlighted the bearish engulfing candle recorded on Wednesday and for that to be confirmed it needs a CLOSE below 5000. A few more sessions and the chart will take the look of a bull flag formation with a big move higher if taken out. Often times it takes a longer view to analyze the chart and both the Nasdaq and S&P 500 are higher for a third consecutive week, CLOSING at highs for the weekly range. The S&P 500 edged out the Nasdaq for the week with a 1.49% gain and the Nasdaq up 1.47%. Looking on a WEEKLY basis the best performing groups came from the material, financial, industrial, energy and technology sectors with weekly gains ranging from 3.9 to 2%. The laggards for the week were the consumer staples and utilities with the XLP UNCH and the XLU declining 1%. The retail group is starting to make some headway higher and perhaps that is a sign that consumers are feeling better about the future. Looking at 2 retails ETFs we see the XRT which is made up of smaller and less defensive names looks like it could be forming a double bottom with handle pattern with a trigger of 44.53. It recently put in a double bottom at the round 40 number. The RTH which is comprised of more defensive, stable names is trading just 1% off 52 week highs (XRT is 14% off its 52 week highs) and is sporting a bull flag pattern right at the round 80 number. A breakout above 80.40 carries a measured move to 86. Below is a former best of breed name GIL and how it was looked at in our Friday 7/1 Game Plan. It now rests comfortably above its 50 day SMA and on Wednesday took out a double bottom pivot point of 30.96.