ChartSmarter Monday Game Plan 12/12/16

Markets ended the week on a positive week with none of the major three indexes seeing negative ground Friday. Add to it that they all went out on highs for the session. The Nasdaq and S&P 500 are on six day winning streaks and the Dow has advanced 20 of the last 24 days. For the week it was the Nasdaq that put on the best showing with a 3.6% gain compared to the S&P 500’s 3.1% jump. They each hit all time highs and looking at the weekly chart on the Nasdaq it is higher 4 of the last 7 weeks and it 6 of the 7 CLOSED right at highs of lows for the weekly range. The direction is clear and that is northward and their certainly is FOMO action taking place. Keep in mind many are chasing into year end who are lagging, seasonality trends and tax implications holding into 2017 and the recipe is for elevated share prices going into the end of the month. Bullish sentiment is frothy and yet there was outflows for stock equity funds/ETF’s this week and it was he 39th of the last 49 that has happened. Regarding the S&P 500 has not broken the low of the prior day since Dec 1 (both stats hat tips @ukarlewitz). Friday we witnessed how the rally is broadening as the top three performing groups were defensive in nature with the staples, healthcare and utilities, all of which powered higher by more than 1%. On a weekly basis the best acting sector were the financials with the XLF up nearly 5% on the week and that is what is has averaged as the ETF has risen a combined 25% during its current 5 week winning streak. Look for technology to lead if the rally continues to take shape and below is an “old tech” name that has been pushed back multiple times at the very round 90 number as a bullish ascending triangle has assembled. The chart below was how CTXS was profiled in our Tuesday 12/6 Game Plan.