ChartSmarter Friday Game Plan 12/23/16

Markets once again spent the entire session in negative territory Thursday and it was the Nasdaq which felt it the most lower by .4%. The S&P 500 fell .2% and a peek on its weekly chart is why I prefer this one over the Nasdaq as one can see just how taut trade remains. It could potentially complete a 3 week tight pattern, a bullish continuation pattern, and it adds appeal that it is occurring at all time highs. The weeks ending 12/9-16 CLOSED with one handle and this week headed into Friday is basically right there again (perhaps a bit concerning is a possible second consecutive weekly doji candle). For the week thus far the S&P 500 is up .1% and the Nasdaq is higher marginally by .2%. On individual names a bit disconcerting is the behavior in bellwether FDX, the largest component of the IYT at a more than 12% weighting, which recorded a bearish shooting star weekly candle the week ending 12/16 and this week is following through lower by 2.8% thus far. Notice the very round 200 figure was problematic for FDX with just one close above on 12/13. Perhaps the IYT provided some foreshadowing as we pointed out a couple weeks ago that it registered a bearish hanging man candle on 12/8. The only three of the major S&P sectors to advance Thursday were energy, utilities and healthcare, but the most notable of all was the softness in the consumer discretionary group. The XLY slipped 1.1% and this is perhaps the biggest worry on the wall the markets are climbing in my opinion. Or is it just more sector rotation? If it is the latter it is certainly doing so at an alarming rate. Below is the chart of AMZN, which is often named the culprit of a weakening retail group, and it has not been spared from the stress. Sentiment remains high for the stock, the exact opposite of a NKE. A pair trade going forward?