ChartSmarter Wednesday Game Plan 10/26/16

Markets were somewhat soft Tuesday with the Nasdaq falling .5% and the S&P 500 by .4%. Most troubling was the action of the Russell 2000 index with the small cap benchmark declining .8% and that 1210 number we mentioned has to be watched closely as a failure there would be a break below a double bottom. Both the Nasdaq and S&P 500 did record bullish MACD crossovers in the last couple sessions, but one has to keep in mind they both recorded one in September as well and failed to energize and real excitement for a move higher. Today we witnessed a bevy of earnings reactions that really has to make one wonder how the market is still holding up at these levels (of course one has to look at that bullishly as they hold firm despite all the data). WHR for one plummeted 10.8% and it is now in bear market mode lower by 22% from most recent 52 week highs. MAS a best in breed homebuilder periphery play slumped 9.5% and did find a floor at least for the moment at the round 30 number. SHW put in its second straight fumble losing 10.8% Tuesday and its prior reaction fell by 6.9% on 7/21. Perhaps one should not have been all that taken aback as SHW has lost value 10 of the last 15 weeks and WHR 10 of the last 12. As noted earlier these 3 names are all a representation of a weak housing market and therefore consumer. One had to look no further than the UA feedback today as to the mood of the shopper. It slipped up to the tune of 13.2% after having trouble clearing the round 40 number all throughout September. It has receded 6 of the last 9 weeks and is now a whopping 35% off its most recent 52 week highs. Even some moves in good looking tech stocks post earnings have to be watched. One of my favorite charts GLW surrendered 3.8% today. We can talk about various transports which also failed to impress such as WAB, JBLU and PCAR which all were lower between 3-4%. All the chatter of money being moved into discretionary and yet Tuesday it was the worst performing group. The two best were the most defensive with utilities and staples showing the way higher, the only ones of the major S&P sectors to gain today. Select financials are holding there own and one to monitor is C which if it can climb above the very round 50 number, could deposit capital gains to shareholders, pun intended. Below is the chart and how it appeared in this Mondays Game Plan.