ChartSmarter Friday Game Plan 9/15/17

Markets displayed some bifurcating action Thursday as the Dow gained slightly and the Nasdaq fell .5%. The S&P 500 was little changed and the Russell 2000 had a day off from its usual nascent strength falling .1%. The Nasdaq continues to struggle with the 6450 number and the S&P 500 with the 2500 figure. The S&P 500 did record a spinning top candle which can signal a change, perhaps temporary, in the prevailing trend. The Dow did climb and CLOSE above a 22180 cup handle and has advanced each session this week so far. For the major averages on a weekly basis heading into Friday it is the Dow that is assuming leadership among the big three with a gain of 1.8% heading into Friday compared with the adds of 1.4 and 1.1% for the S&P 500 and the Nasdaq. Looking at individual groups Thursday it was the the defensive utilities that gained .9% via the XLU. Keep in mind the ETF is coming off one of its worst sessions of the year Tuesday when it slumped 1.7%. With all that being said the fund remains just 1% off recent all time highs and today recorded a bullish engulfing candle testing a recent cup base breakout trigger of 54.73 taken out on 8/18. Below is the chart of one of our favorites in the group ETR and how it was presented in our Monday 8/7 Game Plan. It is now back above its 50 day SMA and was unable to push through an 80.71 cup base trigger although it came within just .22 on 9/11. As always demand a CLOSE above the trigger. Thursday saw technology, financials and cyclicals all underperform. The tech space could certainly get a lift from one of its generals, AMZN. Talk about the round numbers, Wednesday the stock kissed the round 1000 number precisely and today shied away. Today however could be considered bullish as it held its 50 day SMA for the second straight day and a finish above 1000 could accelerate a move to 1080 area which could complete a nice cup pattern.