ChartSmarter Wednesday Game Plan 2/1/17

Markets finished in the red once again, but for the second straight day managed to cut into intraday losses later to close well off session lows with powerful volume. The S&P 500 recorded its first four session losing streak, albeit barely, since the 9 day losing streak between 10/25-11/4 and we all know what has happened since then as the benchmark rallied 200 handles. Looking at the S&P 500 chart one sees the last 2 days recording bullish hammers, so the tug of war carries on. With all the negativity surrounding where the market lies, suggesting it is well ahead of itself, shorts have to be wondering what is going to crack it. I will still maintain my stance that it is imperative that the Dow CLOSE above the round 20000 number this week, or things could get shaky. Lets remember it is not where you start but where you finish, and the bulls are pulling their weight the first two days deceptively in this tug of war just off all time highs. Of course we could get some more clarity with the big 3 very influential names reporting the next 3 days. AAPL reports tonight after the bell, and as of this writing was up almost 3% after hours, and it has gained ground 9 of the last 11 weeks and on the weekly chart has been rounding out the right side of a good looking, long cup base that began back in May ’15. Tech in general has been held up nicely via the semiconductors and looking at the overall group through the SMH shows the ETF has risen 25 of the last 31 weeks. It is not to say there have not been bumps along the way, but they were brief and were fiercely supported by a rising 50 day weekly SMA. That line provided comfort the weeks ending 9/9, 10/14 and 12/2/16 which all surrendered 4.5, 2.9 and 4.1% respectively. Below is a best of breed name in the group and how it was presented in our Tuesday 1/17 Game Plan. A very orderly and gradual uptrend is well underway and further gains within the group should lift most boats within including this one.