ChartSmarter Tuesday Game Plan 5/16/17

Markets registered mediocre gains as the Nasdaq, S&P 500 and the Dow all gained .5%. For the Nasdaq it was its sixth consecutive Monday advance and the S&P 500 nudged past the round 2400 number. The small cap were firm with the Russell 2000 higher by .8% although it reversed somewhat off the round 1400 number in todays trade. Looking at individual groups it did feel the averages were higher than they actually were. There certainly was a risk on feel as the leading sectors were materials and energy and the financials were a strong third with the XLK up .6%. Many in the banking group were sporting negative head and shoulders reversal patterns and some are beginning to look like they want to break to the UPSIDE and when charts do the opposite of what is perceived the movements can be swift and powerful. BAC is a good example and to add a layer of comfort the stock resting along its 50 day SMA, although it is sloping lower. Technology was also in the mix and semis have been stout throughout. NVDA was robust Monday higher by 5% as it seems longs are adding to their stakes and participants who were on the short side are continuing to cover. QRVO jumped 5.5% as well reclaiming its 50 day SMA quickly which is what leaders do and below is the chart of FORM and how we profiled the name in our Friday Game Plan last week. The week ending 4/28 screamed higher by more than 28% and it reluctance to give anything back is a very good sign.