ChartSmarter Wednesday Game Plan 8/5/15

Markets were briefly positive in the early going but were repeatedly turned back at the UNCH mark throughout the afternoon and finished lower. The Nasdaq and S&P 500 both fell .2%. The Nasdaq is now on a 3 session losing streak but the combined damage is only .5% and still resides just less than 2.4% off all time highs. AAPL again put in a frail showing down more than 3% and has now declined 10 of the last 11 days since a bearish engulfing candle on 7/21 and is now below an oversold 30 RSI number, a rarity for the name. The S&P 500 is also on a 3 day losing streak and is below its 50 day SMA and quickly approaching its 200 day SMA which has held 3 times already this year in January, June and July. Conventional wisdom says that the more times a line is touched the stronger it becomes, but we all know what we can do with textbooks. Better used as kindling once published. Sectors with the best showings today in order were the materials, consumer discretionary and then the staples. They were actually the only three groups to finish in the black Tuesday. Utilities and energy lagged, completely confounded by energy. Not. The staples seems to be where investors are looking to hide out in the “anticipated” correction by many and the XLP continues to impress as it consolidates above the round 50 number. That level was penetrated to the upside twice previously this year with CLOSES above on 1/22 and 2/27 and 3/2 and both times were promptly sent back below. Two of the last 3 weeks have weekly finishes above 50 and tight with all 3 CLOSING within just .63 of each other. A very strong performance by CLX now nicely through the 111.13 double bottom trigger profiled in our Thursday Game Plan (chart below) and higher by almost 4.5% this week already in active trade. Someone showing their hand too obviously? On the flip side PG is on a 4 day losing streak and knocking on bear market territory. When names in strong groups fail to participate pay attention.