ChartSmarter Wednesday Game Plan 2/18/15

Markets began the holiday shortened week with a yawn, overcoming modest early morning losses. The benchmarks seem to be pausing at the respective round numbers with the S&P 500 and Nasdaq right at 2100 and 4900. Utilities continue to lag and healthcare was among the winning groups. Energy and financials backed up the top 3 sectors of the day. The XLF continues to move forward after a break above a double bottom trigger of 24.17 on 2/10. The move can be considered suspicious as the pivot point in the base was below the 50 day SMA, but as always respect the price action over all else. It is how we get paid after all. Chips remain strong with some chinks in the armor with AMBA’s pierce below the 50 day SMA last Friday, although it did reverse handsomely off the round 50 number Tuesday. Reflecting not to long ago, I remember how the industry was slammed on MCHP earnings on 10/10. The name is considered a bellwether and when it sank 12.2% that day no peers were left unscathed. Even with its last earnings report on 1/30 which fell by 1.6% it is higher by more than 12% the last 2 weeks and now above the important round 50 handle back to back sessions for the first time ever. Others in the group trading above or right at recent breakout triggers are AVGO SIMO NXPI ARMH.