ChartSmarter Tuesday Game Plan 2/14/17

Markets started the week in fine fashion as the averages posted decent gains. The Nasdaq and S&P 500 rose by .5%, but curiously it was the Russell 2000 that lagged higher by just .2%. We spoke about how it was potentially headed for a test of all time highs after being pushed back at the 1390 area three time recently this year. Today the index recorded a bearish shooting star candle which was stopped right at the round 1400 figure. Now of course the Dow hesitated at the very round 20000 number before bursting through, and we know that candlesticks in my experience tend to call bottoms much better than tops so it will be very interesting to monitor how it fares the rest of this week (notice the last 2 weeks recorded bullish hammer candles). It was the financials that led the way Monday with the XLF advancing by 1.1%, followed by the industrial, material and healthcare sectors. Below is the chart of finnie AMP and how it was presented in our Wednesday 2/8 Game Plan (notice the bearish shooting star it registered on 2/2 yet the stock has risen by a combined 4% the last 3 sessions). The staples were the laggards, but the XLP is still bullishly carving out the right side of a cup base just 2 handles above after recently finding nice support at the very round 50 figure last November and December. Earnings will be trickling in this week once again and tonight we see the reports from two solid energy names, DVN and FANG. Perhaps they can ignite some momentum in the group. REITs acted well Monday with the XLRE off to a good start this week jumping .5% and the ETF is looking for a third consecutive 1% weekly gain. Today it pushed its head above its 200 day SMA and it has recorded tow bullish engulfing candles this month already on the second and ninth. The fund found nice support at the zero line on the MACD recording a bullish MACD crossover after zero was resistance twice last September. Former resistance becomes support.