ChartSmarter Friday Game Plan 5/29/15

Indexes shrugged off Chinese market plunge and finished fractionally lower, though off session lows of nearly .5% early on. For the week heading into Friday the Nasdaq is outperforming the S&P 500, higher by .1% aided by Wednesday’s 1.5% jump. The tech benchmark is looking for its third consecutive weekly gain, with all finishing at the top of their weekly ranges. The S&P 500 is lower by .2% for the week thus far and a close Friday near these levels would mark a 6th consecutive week closing at the highs for the weekly range. The defensive healthcare and utilities sectors were the only major group to close in the black. For a change there was some positive news in the retail sector with RL gaining 3% on a GS upgrade. ANF rose almost 13% after reporting earnings and below is the chart we ran in an article in early March suggesting the round 20 number could be supportive. That level was tested again this week and held. EXPR rose 5% although it did reverse from intraday highs. Problem is ANF and RL are laggards off 51 and 30% from most recent 52 week highs. GPRO was up better than 6% today meeting 200 day SMA resistance. The stock has had a massive run even though it still sits off more than 40% from recent all time highs. Merger activity continued Thursday in the software group, with the strong getting stronger (semis and software have been among the best performers so it is not surprising to see consolidation within). CA is swallowing RALY, with a hefty premium as the stock screamed higher by 44%. It made a nice double bottom in the mid 8’s in June and December 2014.