ChartSmarter Monday Game Plan 7/11/16

Markets ended the week with a bang Friday with the benchmarks posting robust gains after a well received earnings report. It was the Nasdaq that led the way once again higher by 1.6% and the S&P 500 was not far behind with a jump of 1.5%. The Russell 2000 steamed ahead by 2.4%. The S&P 500 rose for a second straight week up 1.3% and during that time has advanced 140 handles top to bottom, and now rests well north of the well talked about 2100 figure. The Nasdaq was higher by 1.9% and now has jumped more than 5% the last 2 weeks and sits just below an unorthodox double bottom pivot just below the very round 5000 number. The defensive utilities, staples and healthcare groups were the laggards Friday, but each gained more than 1% to give you an idea of how diverse the rally was. For the week only one major S&P sector fell and that was the energy group with the XLE retreating by 1.3%. The cyclicals were the weeks best performer with the XLY advancing 2.2% boosted by homebuilders and retailers. The XHB put in its second consecutive 3% plus weekly gain and is now challenging the 35 level for a third time since April of this year. There have been no CLOSES above the 35 handle and the ETF sits just underneath a double bottom trigger of 35.13. Below it the chart of TTS and how we profiled it in our Friday Game Plan this week. It poked above a flag trigger Friday, which aligned with the round 20 number, and with an affinity for the round number theory looks headed to the 30 handle sometime later this year, which was stern resistance dating back to the June-July and September-October period in 2013. Best in breed DHI rose 6.2% last week following a powerful 4.9% advance the week prior. Look at the volume between Wednesday and Friday as it powered above a 32 trigger in a bullish ascending triangle formation. Looking left on its chart one sees how a gap fill to the upside from the 12/31/15 session created the trigger, which was tough to get above with a bearish shooting star on 4/21 and a bearish harami candle completed on 6/9. Embrace any throwbacks near the 32 pivot.