ChartSmarter Tuesday Game Plan 12/6/16

Markets began the week Monday on a positive note, although somewhat off session highs. It was the Nasdaq which is at least temporarily beginning to get its mojo back which led up 1%. The S&P 500 added .6% and both indexes managed to CLOSE above the round numbers of 5300 and 2200. The S&P 500’s daily chart is sporting a bull flag pattern and attempted to surpass the formation but the results were inconclusive. If it can muster some strength a breakout above the pattern would carry a measured move to 2320. The Nasdaq did recoup its 50 day SMA, but still has work to do after recent bearish engulfing and doji candles. It was the Russell 2000 that was most impressive today rising 1.8%, as the small caps came back into vogue. The ETF did record a doji candle last Friday which will often signal a pause in the prevailing trend, but after just a brief 4 session losing streak between last Monday-Thursday that type of candle does not hold much credence. The best performing groups today were exactly what growth bulls would have wanted as technology, consumer discretionary, financials and energy led the way all in the neighborhood of 1%. Lagging sectors emanated from utilities, healthcare and staples. Industrials continue their romp higher although they may be due for a pause after such a robust run. Below is the chart of LSTR and how it was profiled in out Thursday 12/1 Game Plan. Monday it recorded a spinning top which could signal exhaustion to the current trend, but as we have mentioned last week this has now become a market where you buy pullbacks instead of selling rallies. The stock did recently take out a long two year cup base trigger of 81.90 and any move back toward that area should be purchased.