ChartSmarter Monday Game Plan 4/15/17

Markets concluded a holiday shortened week in an uncharacteristic fashion, lower. The indexes went out on session lows Friday and for the week the Nasdaq dropped 1.2% and the S&P 500 by 1.1% and both undercut their 50 day SMAs for the first time since late last year. The Nasdaq did record its second consecutive weekly loss for the first time since last October-November. Both of the aforementioned averages are lower 7 of the last 10 days and with all the negativity being expressed in the media the Nasdaq is off just 2% from recent all time highs and the S&P 500 by 3%. That can be viewed depending on your bias bullishly by expressing they are still fighting at this lofty altitude. The bears can relish in the fact that this could be just the beginning. On Thursday it was the financials and energy names that bled the most with the XLF and XLE off by 1.3 and 1.8% respectively. Many were troubled by the recent, emerging leadership within the overall weak energy space and perhaps they were correct. The finnies on the other hand have been tumbling with the XLF now 9% off most recent 52 week highs and has descended 5 of the last 6 weeks. Bulls have been uneasy about the command of the defensive groups and outperformance in this arena does not seem to be going away. In fact the only two major S&P major groups to advance this week were the staples and utilities which rose by .5 and .1%. Other groups that previously led the way have flashed warning signs, among the most prominent the semiconductors. The SMH easily had its worst week of 2017 falling 3.6% on gigantic trade with the most shares trading hands for the last 5 months even with the abbreviated week. Below is a chart of MU and how it was portrayed in our Tuesday 4/11 Game Plan, a best of breed name that may hold up as it is behaving itself so far after the gap fill on Friday which can also be interpreted as a bullish inverted hammer. If it continues to hold an add on would be above a 2 1/2 year long weekly cup with handle trigger of 29.97 that began the week ending 12/5/14. Notice the rejection at the round 30 number on 3/24.