ChartSmarter Friday Game Plan 11/4/16

Markets at the expense of sounding like a broken record, lost value once again and it is now 8 consecutive sessions for both the Nasdaq and S&P 500. The Nasdaq lost .9% and for the week headed into Friday has slipped 2.6%. Thursday completed a bearish 3 black crows formation which is often a topping signal and can be shorted with strength into the pattern. Although its 200 day SMA is still sloping higher its 50 day SMA is not. A likely scenario now looks like a retest of a double bottom breakout at 4980 achieved back on 7/11 (notice how that session was stopped at the very round 5000 figure). That area would also double up as 200 day SMA support. The tech heavy index is now higher by just 1% YTD and it was not to long ago that the man who created the FANG acronym wanted NFLX out. Of the four that is the best looking chart at the moment and it rests 8% off recent 52 week highs, while GOOGL is 7, FB 10 and AAPL 11% off their respective highs. The S&P 500 is down 1.9% for the week with one session left and is higher by 2.1% on 2016. The Russell 2000 is higher by 1.8% YTD as it gave up .5% today. The lagging sectors Thursday were technology and healthcare, which seems to be a theme these days. Below is the chart of software leader SAP breaking down and how it appeared in our Game Plan last night and it looks likely to make a measured move to the round 80 number where a gap fill may cause buyers to enter. There were some groups that finished in the green and they were just mild gains at that and included the financials, energy, materials and utilities, and the gains very very modest to say the least.