ChartSmarter Wednesday Game Plan 5/3/17

Markets hovered near the UNCH mark Tuesday although the action in the Russell 2000 was concerning as the benchmark lost .6% and slipped fractionally below the round 1400 figure as it continues to act wobbly following a nice cup base breakout above 1415. The S&P 500 completed its handle on its cup base just below the round 2400 number, as the last 6 sessions have now CLOSED very taut all within just 7 handles. Peeking at the Dow it now sports a bull flag pattern aligning with the round 21000 and a break above would carry a measured move to 21600. Underneath the surface there is some interesting action with the staples and energy groups falling by .6% and .5% respectively. It was the industrials that led the way higher with the XLI up by .5% and the utilities made a rare appearance in the top 3 major S&P sectors as the XLU rose by .2%. Technology is still the place to park capital and many of the “old” names have made a good showing of themselves. MSFT rests just off all time highs and the round 70 number. ORCL is higher by 17% this year and SYMC put an end to an 11 session winning streak today, but has pushed nicely off the round 30 figure. Giving tech a good run for its money the consumer discretionary space is coming to life after sentiment in the group became unpalatable not very long ago. To support that point of view below is the chart of COH and how it appeared in our Tuesday 3/28 Game Plan. The surge today was its best in more than 6 years courtesy of a well received earnings report, its third consecutive positive reaction, jumping more than 11%. There is an add on buy point now looking back more than two year to February of 2015 and a weekly bullish ascending triangle above a 44 trigger. COH is on pace for its best weekly gain since January ’16 and a breakout above 44 would carry a measured move to 61 considering the lows of 27 made back in October ’15.