ChartSmarter Tuesday Game Plan 6/20/17

Markets began the week with some gusto and it was the Nasdaq that led the way gaining 1.4% almost doubling the S&P 500’s move of .8%. It was a welcome site to see the Nasdaq outperform although one would have liked to see more active volume. The Russell 2000 showed decent follow through following last Fridays bump off the round 1400 figure rising .8% too. Looking at some high profile tech names the action in AMZN was questionable at best today as it reversed hard 22 handles, after touching an all time high early one and was unable to CLOSE above the very round 1000 number we spoke of last week. TSLA lost ground for a third consecutive day Monday not joining in the rally after a doji candle recorded last Wednesday. Alongside technology, the markets were comforted by the participation of healthcare and financials with the XLV and XLK adding nearly 1% and it was the energy group which can not seem to catch a bid, even with some M&A activity in the group with EQT buying RICE, which paid a nice premium of 25%. A good overall sign is the tech space finding its footing for the moment and the abundance of breakouts which are working. Keep in mind the best breakouts normally work out right away, so if you have a name that quickly falls back below a buy point, consider that a red flag. The XLV broke out above a 3 week tight pattern today as the ETF CLOSED its prior 3 weeks all very taut within just .27 of each other and the move hit all time highs too, a win win. Case in point of the breakouts holding below is the chart of KITE which we profiled in our Thursday 6/8 Game Plan. Taking a present look it still is hovering just below the very round 90 number flagging with the sessions of above intraday, but none were able to finis above. A CLOSE could send this name “flying”, pun intended.