ChartSmarter Tuesday Game Plan 9/5/17

Markets enjoyed a solid week and it was the Nasdaq that gained every session this week and is now just underneath a cup base trigger of 6460. Although volume was light, typical for this time of year, each of the five days this week all CLOSED at or near the top of their daily ranges, a bullish sign. It rose 2.7% this week, its best advance thus far in ’17 and YTD has now added nearly 20%. The S&P 500 is on a current six session winning streak and it rose 1.4% and the Dow advanced .8%, and it was good to see the latter benchmark cool down and see some risk on appetite return. Looking at individual groups on a weekly basis it was healthcare that stood tall with the XLV jumping 2.9% and the ETF is now battling with the 81 area which has been a reluctant level to get through being turned back there in late June and July. Technology and materials were the second and third best performers and the only two groups to lose ground, and keep in mind on a very firm tape, were financials and the utilities. There have been good clues recently that technology is regaining its mojo with the semis and biotech names acting sturdy, but a former best of breed security play could be back in the mix. PANW has now put up back to back strong earnings reactions with gains of 10.5 and 17.2% today and on 6/1, after four consecutive very ill received reports losing 24.1, 13.2, 7.2 and 12.4% on 3/1, 11/22, 8/31 and 5/27. Speaking of some older tech plays below is the chart of CRM and how it was looked at in our Thursday 8/24 Game Plan. The breakout from the ascending triangle carries a measured move to 101.