ChartSmarter Tuesday Game Plan 3/8/16

Markets displayed some bullish traits to begin the week today with the averages finishing off the lows. The Nasdaq was lower by almost 1% at 3pm and managed to cut into the deficit finishing done by .2%. The S&P 500 for the second consecutive session wrestled with the very round 2000 number, and was able to fractionally finish above it. Do I really have to mention what group led the way Monday? I could probably cut and paste that energy and materials were the best performers. Healthcare was one of the major S&P sectors to advance on the day. The beaten up group which has been subject to announcements from politicians as the primary season heats up may have become overdone. Names like ILMN, BIIB, ALXN, JAZZ and even a VRX rebounded nicely Monday (notice how VRX on 3/1 and 3/4 found support at the round 60 number and one can stay long with CLOSES above that figure). Talking about the round numbers and the healthcare group, below is the chart of OPHT and how it was presented in our Friday 3/4 Game Plan. The ascending triangle is something to keep an eye on and a move above 50 on a CLOSING basis should be taken advantage of. Something to keep an eye on is the action of the small caps as they can often be an early indicator of impending directions of markets. They tend to lead and the Russell 2000 gained almost 1% today and over the last month it has outdone the big 3, as it has risen by 6.6% (during the same time period the Nasdaq is up 4.6%, the S&P 500 4.4% and the Dow by 3.6%).