Markets were harpooned Thursday with the Nasdaq culprit we have been worrying about affected the most today down more than 2%. The tech rich benchmark undercut its 50 day SMA for the third time this year and it has come into contact with that line four times since March, and the more that line is contacted the less firm it becomes. It fell beneath that line one session on 4/13 and then spent 6 sessions swimming under it between 6/29-7/7. Heading into Friday it has dropped 2.1% and looks almost certain to record its third consecutive weekly loss, its first since the weeks ending between 6/10-24/16. With all the bearish talk lets keep in mind it now resides just 4% off recent all time highs. For the bulls that may be something they could brag about, but for the bears they could declare it just has that much more room to the downside. The Russell 2000 gave up 1.7% and is readying itself for a 200 day SMA test. The S&P 500 for the week thus far is lower by 1.4% and is now breaking the opposite way from a 3 week tight pattern, to the DOWNSIDE, and moves that travel in the opposite direction that they should can be powerful. The frailty Thursday was blamed on North Korea, but the indexes have been showing weakness prior, and they will let the tensions be the scapegoat. At the expense of sounding like a broken record the utilities led Thursday and they were the only major S&P sector to advance, up .3%, and the second best performer were the staples even though the XLP dropped .4% (every other major group slumped greater than 1%). Below is the chart of LOGI from the Tuesday 8/8 Game Plan, a long time favorite and absolute tech general and the way it has acted as of late is indicative of the overall tech market anguish. Although I would say a test of the 200 day SMA should be viewed as a gift it that occurs.

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