ChartSmarter Wednesday Game Plan 10/19/16

Markets held onto a good chunk of early morning gains which I am sure many bulls were nervous about. It was the Nasdaq which acted the firmest Tuesday and it was welcome as that has not been the case as of late. It did finish slightly off lows for the session but rose .9% and is flirting with its 50 day SMA. The S&P 500 gained .6% and recorded a spinning top candle and is 1% below its 50 day SMA which we know quite well is sloping lower. Healthcare, materials and utilities led today as all 11 of the major S&P sectors advanced. Earnings continue to come in as season is now underway and the banks have done their part and today some casual diners stepped it up. DPZ which seems like an automatic beat rose almost 5% today hitting yet another all time high. TACO, a little less followed name in the space, just missed putting up in second straight double digit gainer Tuesday adding nearly 9%, after the 7/21 session gained 12.2%. More decent consumer news came from the reaction of HOG which tacked on more than 9%. TTS rose 8.4% after it reported numbers suggesting that homeowners are spicing up their residences. HAS jumped 7% Monday and perhaps discretionary could be getting a further lift. In the tech arena there was some bifurcation as IBM dropped 2.6% but did manage to record a bullish hammer off 200 day SMA support (below is the chart of how the stock was profiled recently in our Monday 10/3 Game Plan and emphasizes the importance of CLOSING prices). NFLX soared 19% after recording back to back double digit losses of 13.1 and 13% on 7/19 and 4/19. One gets the feeling there was a lot of short covering today and would not be surprised to see weakness into the end of the week with the name.