ChartSmarter Friday Game Plan 12/9/16

Markets made it five consecutive winning sessions and it was the Russell 2000 that led the way higher with a robust gain of 1.6% Thursday. The Nasdaq and S&P 500 rose by .4 and .2% respectively, yet both did recorded bearish shooting star candles at all time highs (the weekly candles do like a bit better for those looking for a longer time frame). For the week headed into Friday the Nasdaq is higher by 3.1% and the S&P 500 by 2.5%. At the expense of sounding like a broken record, however a great example of do more of what is working and less of what is not, the financials were the best performing group with the XLF higher by .9% and also is the best actor on a weekly basis up almost 5% headed into Friday. That current 5 week winning streak began with a gargantuan 11.2% move the week ending 11/11. The XLI was the surprising laggard with the XLI down .6%, but do not feel to bad for the fund as it is looking for a potential fifth consecutive week. Another powerful group recently that took a well needed rest today was the consumer discretionary with the XLY UNCH on the day. Technology is still a key factor in seeing how this huge rally pans out and their inclusion obviously would be a big sign. Semiconductors should be the go to group as you want to play the names that have been acting the finest. Below is the chart of MRVL, an “old tech” play and how it was featured in our Friday 12/2 Game Plan. Not only did it retest a former double bottom breakout but it filled in a gap successfully, forming a “cluster of evidence”, when two or more triggers or events align themselves in the same place on a chart.