ChartSmarter Monday Game Plan 5/8/17

Markets seemed destined for another lackluster session until a late day rally witnessed the averages recording a decent Friday. The Nasdaq and S&P 500 both rose .4% and it was a fine example of the “never short a dull market” phrase. All three major benchmarks are now flirting with the round numbers and it was the Nasdaq which finished just above the 6100 figure and is now on the verge of taking out a bull flag formation with a trigger of 6115 which would have a measured move to 6425. The S&P 500 inched past a 2399 cup with handle trigger and the Dow which we rarely look at in a serious tone is now just below its own 21075 double bottom with handle pivot. For the week it was the Nasdaq that powered ahead the most with a move north of .9% and the S&P 500 tacked on .6%. Energy is making a strong case that it is bottoming with the XLE registering a bullish engulfing candle and gaining 1.6%. On its weekly chart it did record a bullish hammer, although it did the same the weeks ending 2/3-10 which did little to inspire the group. For the week energy was the worst performer falling by .7% and it was the only major S&P sector to CLOSE in the red on a weekly basis. Conversely it was the financials and technology that were the weekly winners with both groups the only ones to jump more than 1%. The consumer discretionary group has acted superbly with this week registering its second consecutive weekly finish above the very round 90 figure hitting all time highs. We have been mentioning that the consumer has been very selective in how he/she deploys their hard earned capital. Some casual diners have been big beneficiaries and another example was the action in WING today. Friday it blasted above to round 30 number screaming higher by 11.3% and below is the chart exactly how it appeared in our 4/25 Tuesday Game Plan and is now sniffing out a cup base trigger of 33.52. Peers YUM DPZ and DRI are all saying the group has broad leadership and is poised to move higher.