ChartSmarter Monday Game Plan 4/24/17

Markets spent the vast majority of Fridays session in the red, but for the week put up a good showing. The Nasdaq responded well to its first back to back weekly losses this week adding 1.8% and recorded a bullish MACD crossover as well. One must admire the quick recapture of the 50 day SMA, which recorded just one CLOSE below last Friday. The S&P 500 gained .8% for the week, less than half of the performance on the Nasdaq, and in contrast has now finished below its 50 day SMA for a seventh consecutive day. Friday seemed a bit weaker under the surface that it did on paper with the utilities the clear leader as the XLU rose .5% and was only one of two major S&P sectors to gain. Perhaps nervousness of the French elections this weekend had investors looking for the sidelines. For the week however for those with a longer timeframe there was some real bifurcation taking place. Industrials and cyclicals both rose in the 2% neighborhood and energy declined by 2.2%. Other bullish notable mentions would be handed to the materials and technology groups that rose 1.7 and 1.5% respectively. One has to wonder if energy weakness is foreshadowing any economic vulnerability. I still remember reading one of Yamada’s notes, and although I am strictly a chart guy I do recall her mentioning that their are 500,000 solar panels a day being put up and how she thought that would certainly have an impact going forward. Healthcare was the only sector to lose value this week but it could pay to monitor names that are beginning to behave better these days. Below is the chart of IONS and how it was presented in our Tuesday Game Plan this week. Friday it recouped its 50 day SMA and the last 2 weeks have gained a combined 13.5%, while the XLV fell the last 2 weeks although only by a very mild 1%.