ChartSmarter Wednesday Game Plan 4/5/17

Markets once again traded listlessly as the major averages did not move much with the Nasdaq and S&P 500 finishing near the UNCH mark. The Nasdaq has been the talk of much discussion as technology seems to impress. The benchmark has been aided by the larger cap tech names or “old tech” plays but the index itself continues to have issues CLOSING authoritatively above the round 5900 number. It has achieved 6 finishes above since the initial time on 3/1. On a short time frame the bearish engulfing candle on 3/28, with the prior 4 sessions all closing within one handle of each other at all time highs still looms large. The intraday high on 3/28 was challenged nearly to the penny on 4/3 and for the time being has shied away. A decisive move above could really energize the bulls and have the bears which have been incessantly calling for a correction running for cover to cover their shorts. The bears have voiced concern, and rightfully so, as to the suspect leadership. The utilities acted well again today with the XLU rising .3% and it has carved out a long weekly cup with handle trigger of 52.33 that began the week ending 7/8/16 (the ETF has history with the very round 50 figure dating back to the week ending 1/30/15). Can the bears claim that the lagging energy group that has been picking up steam on a daily basis questions the validity of this “long in the tooth” rally, or is it just healthy sector rotation? Rounding out the top four Tuesday was the staples group and the XLP is hovering right near its own long, weekly cup with handle trigger of 55.60. Looking within the big sectors laggards were the airlines, broker dealers, semiconductors and retailers. Regarding the semi space below is the chart of NVDA and it highlights the importance of CLOSING prices. Below is the chart and how it was presented in our Friday 3/31 Game Plan and any who attempted to front run the flag trigger were burned Tuesday as the stock slipped 7%.