ChartSmarter Tuesday Game Plan 11/22/16

Markets began the week seeing green Monday as the major averages never saw negative territory. Once again it was the Nasdaq that provided the biggest boost advancing .9% and it is doing exactly what you like to see after a recent breakout. It has risen nearly 1% since its double bottom breakout above 5312 and the best breakouts tend to work out right away. The Dow which we rarely talk about is sporting a bull flag formation and it is moving away from that continuation pattern and would have a measured move of nearly a thousand handles which would put it very close to the very round 20K figure. The S&P 500 rose .75% and hit an all time highs in the process. Among the top performing sectors Monday it was energy that was the clear leader with the XLE jumping 2.1% (10 of the 11 major S&P sectors rose today, with XLRE the notable exception). We mentioned the consolidation going on in the software and semiconductor space last week, and we have begun to see some in this arena as well with WNR taken out by TSO. The fact that these names are acting well in the face of a strong greenback tells you all you need to know. Among the laggards Monday were healthcare, but one who searches for names that acted well amidst a weak group could potentially find some decent winners going forward. INCR fits that bill, and below is the chart precisely how it was presented in our Wednesday Game Plan last week. The very round 50 figure has been a thorn in its side since going public 2 years ago. It is a very bullish sign that 7 of the last 8 sessions have CLOSED above the 50 number, with all eight having touched 50 or traded below it intraday. For those more patient investors it has the possibility of completing a 3 week tight pattern depending on Fridays finish, a bullish O’Neill play. For those who want a full copy of Tuesdays Game Plan email me at chartsmarterblog@gmail.com.