ChartSmarter Tuesday Game Plan 9/15/15

Markets began the week with losses as the Nasdaq fell .3% and S&P 500 fell .4%. Utilities were the only group to end the session in the green. Selling was broad but volume was subdued. The benchmarks are going to need time to digest the huge undercutting of their MA’s and there will most likely be further selling to come. Bases are very rarely woven with such extreme volatility. The S&P 500 is quickly approaching the bottom diagonal line of the bearish pennant pattern we talked out in Mondays Game Plan. The Nasdaq’s chart resembles more of a bearish rising wedge formation. One of its largest components, GOOGL at more than 5%, we saw as a short not to long ago at the round 700 figure (below is the chart how we presented it in our Thursday 8/13 Game Plan). Looking at other major names that make up a big chunk of the tech index, AMZN is in the midst of a decent looking double bottom base. Today it fell 1.5% and it needs to remain above its 50 day SMA which aligns with the round 500 figure and showing its relative strength is still sloping very nicely upward. MSFT which makes up 4% of the Nasdaq is about to record a “death cross”. The last 3 weeks are almost a spitting image of the Nasdaq as MSFT also sports a bearish rising wedge pattern. A move back to the round 40 handle seems likely in the near term, a figure it has touched and bounced from this January, February and April.