Complete Thursday Game Plan

Markets fell Wednesday, with volume to boot, putting the question forward whether or not we are on the edge of a correction. Sure you have heard about it ad nauseum, but it seems logical, maybe even prudent. Both the Nasdaq and the S&P 500 lost a little more than 1%. The Nasdaq is coming perilously close to a 50 day SMA test right near the big round 3200 number. A number of healthy looking charts were deflated today as they pierced their 50 day SMAs to the downside. They included FLR ETN CRM NFLX, just to name a few. GWR, from the important transport group, lost 4% as it sliced its 50 day SMA on 2X average daily trade. Housing leaders WY DHI, lost their their 50 day SMAs today for the first time in some time falling 4 and 2.5% respectively. The SMH has now lost more than 4% this week with recent semi IPO down 12.5% this week, XLNX 5%. When we previously had pullbacks it was not with this much technical damage to individual stocks. That is what is concerning me most at the moment. Perhaps the “canary in the coal mine” was the outside day Monday that IYT recorded. JJC is now down 7 of the last 8 weeks. Many signs are starting to bubble at the surface, and that lava inside the volcano that has been simmering ever so silently, may just start to become a bit more audible in the near future.