Markets achieved a second consecutive reversal to start the week, with the bounce around 1pm failing during the last minutes of trade Tuesday. The Nasdaq ended higher by .1% and S&P 500 was UNCH headed into the Fed announcement tomorrow. After tomorrows session there should be a bit of clarity and perhaps we can begin to see the emergence of a new trend, instead of the choppiness that has been displayed as of late. The S&P 500 amazingly recorded a third straight session CLOSING with a 2139 handle. Healthcare and consumer staples led the way Tuesday with the XLV advancing .3% and the staples sector via the XLP by .3% as well. One gets the feeling that some of the more defensive dividend paying names are starting to catch a bid, with the REIT group in particular as they break away from the financials. Looking at the VNQ narrowly missing a 5 session winning streak following the bullish harami last Wednesday after an 8 handle decline (the ETF yields close to 4%). There does seem to be a pervasive feeling that many gurus are expecting the market to recede, and of course markets can do anything at any given time, but remember it attempts to confound the most. Getting back to some healthcare names, below is the chart of INCY which we profiled in Tuesdays Game Plan this week. Today it finally cleared the 84 handle which was stubborn resistance on a CLOSING basis as it was above intraday 5 separate occasions beginning with 8/22 and earlier this month recorded a golden cross. Other names that have looked powerful have been AGIO and ABMD which have been profiled recently as well. Energy continued to lag and the 800lb gorilla in the group XOM today slid further beneath its 200 day SMA after an investigation was announced. The XLE which has made a nice recent series of higher highs and lows is now sporting a bear flag pattern and a break below 66.90, basically right here, carries a measured move to the 62 number.

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