ChartSmarter Tuesday Game Plan 8/4/15

Markets fell to open up a new week with the S&P 500 looking like it was going to undercut its 50 day SMA losing .3% but a lukewarm rally mid afternoon kept it just above. The index never seemed comfortable with life above the 2120 handle which was a bullish ascending triangle we were watching between February and May. As with individual stocks, if an index makes little headway after a breakout it should be looked at in a negative light as we know the best breakouts will flourish and work out almost right away. The Nasdaq gave back .25% bouncing right of its 50 day SMA. Sectors that fared best today were the defensive, but leading, healthcare and consumer staple names. Energy assumed its laggard role being the worst performing group Monday. Names in the sector that reported earnings today included DO and NBL and both fell in the 4% range and both are lower by more than 50% from their recent 52 week highs. In the tech space some former leading plays in the semiconductor group have had some breathtaking falls. SIMO is looking at a potential 7th weekly loss in a row and starting the week with a 9% drop makes it very likely. It has declined almost 40% from recent all time highs made just 5 weeks ago. Of course the big talk was 800lb tech heavyweight AAPL losing its 200 day SMA, many times a stocks last line of defense. Just ask SIMO. Below is a chart we posted on the stock on July 9th. Our stop was a bit to tight, but not may were talking in a bearish light on the name at the time. It will have implications on the Nasdaq going forward.