ChartSmarter Friday Game Plan 3/17/17

Markets spent the vast majority of Thursday in the red with the exception of the first half hour but losses were minimal. The Nasdaq was UNCH and the S&P 500 lost .16% and the Russell 2000 was higher by .2%. The latter is so far so good as it finished above its 50 day SMA for a second straight day, baby steps and the Nasdaq chart is looking more productive. It is now sporting a bull flag formation just above the round 5900 number and a break above 5920 carries a measured move of nearly 300 handles. Lets remember the tech rich benchmark is now going for a 11th consecutive Friday advance. For the week heading into Friday it has gained .6% and if it CLOSES in this area tomorrow it would form a bullish 3 week tight pattern. The S&P 500 is higher by .3% thus far this week and the Russell is looking to put an end to a 3 week winning streak and the week ending 3/3’s bearish gravestone doji candle at all time highs looms large. Many traders I speak to are still looking for the pullback and the phrase I am hearing a bit if the old mantra that the markets take the staircase up and the elevator down. Truth is no one really knows but when I see guys I respect looking to back up their own bearish thesis mentioning 4 other well respected market participants confirmation bias is rearing its ugly head in a bad way. This was supposed to be a rocky week with Yellen, Dutch elections, but the markets keep beating to their own drum. Enjoy the ride while it lasts. Looking at individual sectors Thursday one would have thought the damage would have been more noticeable in the major averages as there were some sizable losses with healthcare and utilities falling in the 1% neighborhood. There was a bit more healthy leadership today with the financials and tech number one and two and below is a chart of a good looking tech chart that we highlighted in our Friday 3/10 Game Plan. It demonstrated solid relative strength today as it distances itself from the round 30 number.