ChartSmarter Friday Game Plan 3/31/17

Markets spent the vast majority of Thursday in the green with a very slight blip early on and they finished lukewarmly positive. The Russell 2000 outperformed higher by .8% and is now back above the 50 day SMA after its current 6 session winning streak. The Nasdaq and S&P 500 added .3% and for the week headed into Friday have advanced by 1.4 and 1% respectively and the Nasdaq has recaptured all of last weeks losses now. Today the financials led the way with the XLF rising 1.3% and it currently sits right at its 50 day SMA. One could ponder if a head and shoulders pattern could be underway but that is simply useless speculation. At the other end of the spectrum it was the utilities and staples that lagged with the XLU and XLP off by .7 and .3%. Keep in mind the gurus in the Barron’s roundtable I believe it was at the beginning of the year almost unanimously said to avoid the staples and looking on the weekly chart was surprised to see the XLP on a current 4 week losing streak, but take notice the damage has been muted as it rests just 2% off recent 52 week highs. On the weekly chart it looks decent with a long cup with handle base that began the week ending 7/15/16. The potential trigger would be 55.58. Retail continues to perk up and the XRT is higher by 3.6% this week so far and through Thursday sports a bullish engulfing candle. It did so off the round 40 number which it has bounced powerfully twice last year with the weeks ending 7/1 and 11/11 jumping 3 and 8.1%. Below is the chart of former best of breed name WSM which is doing a decent job of attempting to recapture its mojo and how it was presented in this Wednesdays Game Plan. It recorded a classic frypan bottom breakout on 3/29 jumping above the very round 50 number and 200 day SMA and is looking for its first double digit weekly gain tomorrow which would be its first since week ending 4/15/16.