ChartSmarter Monday Game Plan 11/7/16

Markets continued their ugly losing streak which has now reached 9 sessions. The Nasdaq and S&P 500 both lost roughly .2% after being higher by .5% in the early afternoon. The Nasdaq slumped 2.8% for the week, its largest drop since the week ending 2/5 which slumped 5.4%. It is lower 4 of the last 5 weeks, like the S&P 500 which slipped 1.9%, and the S&P 500 has now “outperformed” the Nasdaq 3 of the last 4 weeks (the S&P 500 is 5% off its recent 52 week highs and the Nasdaq is 6% off its). Friday the two best sectors were among the worst actors recently, the healthcare and real estate groups. For the week however the XLV lost 1.9% and is now lost value 10 of the last 13 weeks and is 13% off recent 52 week highs. Looking on a weekly basis all major S&P groups fell and 3 slumped more than 2%, with staples, energy and technology surrendering 2, 2.3 and 2.7% respectively. On a monthly basis one can really see the relative weakness in healthcare as the XLV is lower by 7.55%, more than double that of the second softest group the cyclicals down 3.7% over that time period. The IBB is coming onto a critical level at the round 240 number which two times has held on a weekly basis ending 2/12 and 7/1 (it met stern resistance at the round 300 figure the week ending 9/23 and 400 the week ending 7/24/15). A break below 240 would be a violation of a bearish descending triangle pattern. If the group can regain its footing, one wants to associate themselves with best of breed names as always and below is the chart of GWPH and how it appeared in our Monday 10/31 Game Plan.