ChartSmarter Wednesday Game Plan 5/17/17

Markets recorded yet another quiet session and we all know the adage never short a dull market. N0t surprisingly it was the Nasdaq that led once again with the tech rich index gaining .3% and it is making it a habit of CLOSING in or at the top of the daily range doing so now 11 of the last 12 sessions. The S&P 500 fell fractionally continuing to hug the round 2400 number. Among individual groups that led were technology and the financials, while utilities lagged. Homebuilders are quietly acting well once again as they were in the shadows of some periphery plays for awhile, and below is the chart of LEN and how it was presented in our Wednesday 5/10 Game Plan. The round 50 number which was resistance throughout the month of July ’16 now looks to be firm support and gives one a nice stop to play against with good risk/reward scenarios. Retail names which enjoyed a very quick dead cat bounce, seems to have fallen back into their death spiral and is a fine example of things that are in motion tend to remain that way. Former best of breed names LULU is now 39% off recent 52 week highs and today crossed underneath the very round 50 number, but managed to CLOSE just above. NKE firmly fell below its 200 day SMA Tuesday and is now 13% off its own 52 week highs and until recently looked to be carving out a weekly double bottom trigger of 60.43 in a pattern that began the week ending 12/25/15. Presently it resumes it series of lower highs and the round 50 number which acted as nice support last November and December will need to hold if that area is tested again. Delving more deeply into the behavior of the consumer which obviously is impacted by the consumer, one has to look no further than the truly ugly SKT chart. If individuals are shunning even discount outlet operations that can not be a good sign. Perhaps it is a bit of a management issue, maybe rents are being lowered or worse vacancies are accelerating. I am just a technician so I am not sure if any of those former statements are accurate but the chart is making it hard to view to situation through a rosy lens. It has lost more than 20% the last 3 weeks and sliced the round 30 number which was support dating back to the weeks ending 6/8/12, 8/23/13 and 2/12/16.