ChartSmarter Monday Game Plan 7/10/17

Markets did an about face Friday, just the opposite of Thursdays action, never falling into the red and going out near session highs. It was the Nasdaq that was the best performer, of the big three higher by 1%, the S&P 500 by .6% and the Russell 2000 added 1.1%. For the week both the Nasdaq and S&P 500 recorded bullish hammer candles which were also haramis, and interestingly the Russell 2000 registered doji candles the last 2 weeks, which often indicate a potential softening of the existing trend. Looking at individual sectors Friday, technology and cyclicals were the strongest with the XLK and XLY higher by 1.2 and .9% respectively. And just what bulls would like to see it was utilities, staples and energy that lagged. On a weekly basis it was the financials that behaved the best with the XLF advancing 1.5% and the ETF is now just below a cup base trigger of 25.40. Rotation into the sector is easy to spot as it is up 4 of the last 5 weeks, with the weeks ending 6/9 and 6/30 higher by 3.6 and 3.3% on above average weekly volume. Energy was also the worst actor this week with the XLE dropping 1.4% and has lost ground 20 of the last 30 weeks and is nearing bear market territory down 18% from most recent 52 week highs. Another industry that continues to attract capital are the transports. The IYT is higher 5 of the last 7 weeks, with the two down weeks off by .1%, but one caveat is volume has dwindled with almost each successive week. Below is the chart of ALK and how it was viewed in our Game Plan. The 92 number was stubborn resistance recently, but like a beach ball underwater it was released today and the stock took off, pun intended, by 4.6% for the week and is on a current 6 session winning streak. Look for a move toward the very round par number potentially in the near term.