ChartSmarter Tuesday Game Plan 5/20/14

Markets overcame a slightly weak open and forged higher the rest of the session. The Nasdaq led Monday as it gained .9%, although volume was muted. It was the benchmarks 6th straight Monday gain (4/28 was actually down 1 point, but a nice intraday reversal put a bullish tone on the session). The S&P 500 finished in the black the last 6 Mondays, and I do get leery when the lagging Nasdaq, shows the way. That being said there seems to still be an overwhelming amount of negativity on the stream, and the S&P 500 has shrugged off almost all of it. Climbing the proverbial wall of worry seems misleading with index right near all time highs. I feel we are headed for a move lower as well, full disclosure, but as a technician I need to see price confirmation. Lack of breadth, scant number of new 52 week highs, software and biotech names biting the dust. Scouring through hundreds of charts this weekend I still see strength coming from very defensive groups. I see alcohol and tobacco moving higher. Real estate advancing and food names like UN K. Looking for positives seems like a search and rescue expedition, but for one perhaps the moves weakness in the retail brokerage names can be viewed as bullish. Names like SCHW AMTD ETFC (latter two are right at round numbers) are clinging to their 200 day SMAs and deep into correction mode. When they are screaming higher pundits like to point out how the mom and pops are always the last to the dance. Well you can not have it both ways, and this decline may be some ammunition for the bulls.