Markets put in a weak showing to start the week Monday beginning the day with some gusto only to go out near session lows. The Nasdaq is now lower 6 of the last 8 days and that is including a miniscule gain last Friday. Today it fell .7% and that was with AAPL acting well and flirting with reclaiming its 200 day SMA. It last lost that line on 2/5 and needed just a few sessions to recover it. The stock, IF it gain decisively recapture that line, could be in the early stages of carving out a double bottom base with a potential trigger of 179.04. The Russell 2000 still has the most constructive chart to me but it lagged today slumping .9% and fell below its 50 day SMA. The benchmark is still in the throes of a symmetrical triangle with the three higher lows bearish candlesticks, as the 1/24 and 3/13 days recorded bearish engulfing candles and a shooting star was seen on 4/18. The VIX remained relatively quiet Monday and now has CLOSED 13 straight sessions below it downward sloping 50 day SMA. Should someone awake the sleeping giant?

Looking at individual sectors Monday it was again the energy and utilities that “led” (both still fell), and it is familiar as both of these groups have been leaders twice in each of the last 4 weeks. The XLE acted best among that of the major S&P sectors with a small loss of .1%, and the XLU lost .3%. The XLE is on its first 3 week winning streak of 2018 and has done so as the greenback is strengthening, which could be a tell. The UUP is likewise on a 3 week winning streak and has gained 8 of the last 10 sessions and last Thursday reclaimed its downward sloping 200 day SMA for the first time in almost exactly one year. Lagging were the materials, industrials and healthcare all falling between 1.3-1.5%. Technology was disappointing once again and this was also become a recurring theme. The XLK’s 50 day SMA is now curling lower again, very quickly after it last did so late in March.

Small cap names have been holding their own with the Russell 2000 still positive in 2018, albeit fractionally so. When you dig a little deeper and look for recent new issues there have been some nice winners. Keep in mind they are normally under followed which could give investors some advantages. Of course some will trade in a volatile fashion as they try and shape their first patterns. Below is the chart of JNCE and how it appeared in our Friday 4/27 Game Plan. As we mentioned these young stock could trade erratically and this one is no exception as it is still 30% off most recent 52 week highs and experienced a 12 of 15 week losing streak the weeks ending between 5/5-8/11, including FOUR double digit weekly losses. Often a charts picture becomes a little clearer on longer time frames, and this one is no exception, and below one can see the support at a bullish ascending triangle recently. It is a bit of a stretch to call the recent action a handle in a weekly cup base but this name merits serious attention for those looking to park some of their speculation capital somewhere.

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