Markets took a bit of a bruising today and it may have been a bit worse than the averages indicated. Most sectors were lower today with just energy and telecommunication services higher. Of course the Nasdaq has been on a nice 7 day winning streak and due for a pause. The S&P 500 recorded a bearish outside day today falling .7%. Some sectors we like are energy and it has produced a couple of disasters this week. Today the problem was SM falling 17% after reporting earnings, slicing its 200 day SMA in the process. Investors looked as if they were expecting a beat after Tuesdays 4% pop. Yesterday the issue was SN which is more concerning since it was a leader and had just broken out of a nice cup base on 2/12. Names that fail so quickly after a breakout send red flag signals. SN is down 10% this week. The transports which are of course directly affected by energy prices are sending some warnings too. The IYT lost another 1% today after Tuesdays one percent drop as well. Todays move sent the ETF below its 50 day SMA and the round 130 handle. UPS is down 2% this week so far and poised to fall for a sixth week in the last 8. Volume trends have been very poor for UPS as it readies itself for a 200 day SMA test. Peer FDX is looking to descend in value for a fifth time in 6 weeks too. Those two names are probably some of our best economic bellwethers, so when there charts are trying to deliver a message good or bad, it pays to listen.
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