ChartSmarter Wednesday Game Plan 5/10/17

Markets were once again little changed although the Nasdaq did lead advancing .3% and this is a good sign. It has now outperformed the S&P 500 the last 3 weeks and it did nudge past a bull flag formation. The S&P 500 did fall fractionally as it readies itself for a potential CLOSING move above the round 2400 number. The Russell 2000 is now lower 7 of the last 9 sessions, but is finding support at its 50 day SMA. The cyclicals were the clear standout Tuesday with the XLY rising .6% and it has benefitted from its top component AMZN comprising nearly 15% of the ETF. It has lost ground on a weekly basis just 5 times thus far in 2017 and four of the five fell less than 1.15%. Others in the group showing muscle include MCD. This is a chart of beauty as it has gained 16 of the last 17 weeks and has acted well POST breakout from a weekly cup base trigger of 132.06 in a base that was nearly one year long beginning the week ending 5/13/16 and taken out 4/21/17. Lagging were the energy, utility and material groups. I am not sure I can remember so may bullish bottom calls on the energy group, myself gingerly among them, in some time which tends not to work out to well. Peering into individual names in the consumer space the theme of consumers pouring money into things associated with their homes below is the chart of SCSS and how it appeared in our Tuesday Game Plan this week. Supporting the round number theory it bounced almost precisely off the 30 figure today recording a bullish hammer candle and now has the look of a bull pennant pattern and one can add to through 32. At the very least the name is letting impatient bears to sleep soundly. That is at least until they wake up.