ChartSmarter Tuesday Game Plan 5/9/17

Markets sighed Monday to open the week with the Nasdaq and S&P 500 UNCH and it was the Nasdaq which recorded its first lazy Monday in its last four. The flat on the Nasdaq looks ready for takeoff and could energize a 300 handle move higher from here. The S&P 500 recorded a doji candle Monday as it just missed CLOSING above the round 2400 handle and bulls want to see a thrust above negating a possible double top with the 3/1 session. I have maintained that candles have been much better at predicting bottoms than tops, however one must take note that 4 of the last 6 days have registered a doji on the S&P 500 and that may carry a little more bearish weight as they often indicate a possible reversal of the prior trend. Even though the day was flat only three major S&P groups managed to advance and it was the energy group that powered the way with the XLE higher by .7%. It was followed by technology and cyclicals. Consumer discretionary continues to act well with the XLY now above the very round 90 number which could very well motor it toward par. The ETF is looking at a 3 week tight pattern potentially this week as the last 2 CLOSED within just .11 of each other. Charting over the weekend I was aware of home decorating names behaving bullishly but more evidence backs it up with the recent IPO FND screaming higher by more than 13% last week. SITE reports Wednesday morning and has been trading between the round 40 and 50 numbers and would not be surprised to see this one rocket through 50 after reporting. Then I witnessed RH being higher by 89% YTD. Chips have been looking a bit toppy and that could derail technology somewhat and below is the chart of NVDA and how it appeared in our Friday 5/5 Game Plan. It has been making lower highs since February this year.