Markets were perhaps a bit delayed in their reaction to the contraction in the economy Q4 of 2012. Today they slumped recording their worst day of short lived 2013. The softness was seen most in tech as the Nasdaq declined by 1.4%, while the S&P 500 fell by 1.15%. Breakouts were non existent today, and instead we shall highlight some of the weaker names that are raising suspicion. RKUS, a recent networking IPO slumped 8.5% last week, (as the Nasdaq rose 1%), and today the carnage continued as the stock gave up almost 6%. Will be interesting to see how it will react to its first 50 day SMA test near 20. PETM has the looks of a stock that has undergone a trend change. Last week the stock cratered almost 9%, surrendering its 200 day SMA in the process. SI may have gone through its own trend change today as well, as it sliced its 50 day SMA to the downside, and falling below its 105.24 flat base trigger it took out 12/11 of last year. And another note I wanted to discuss was the importance of a stock taking out, and CLOSING above its trigger. A good example of this is TOT which intraday took out a 55.17 flat base pivot last Wednesday but reversed to finish below that trigger by the end of the session. Today it lost almost 3.5%.
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