Markets lost ground Monday, trying to rally back from lunchtime weakness, rallying lukewarmly to finish off the lows. Both the Nasdaq and S&P 500 lost .7% and this was despite some decent economic news premarket with a better ISM showing. Of course most eyes turned to Ukraine. But this market has been looking for an opportunity for a breather, perhaps akin to running three marathons upward basically straight. It may need sometime to rest and recuperate. Even before this heavily covered Ukraine story some of the best groups were seeing some weakness last Friday. Among them were biotechs which saw some hefty losses within the sector. Names like SLXP which had a massive reversal after earnings reaction Friday. Notice how it was stopped precisely at the round 120 handle. JAZZ lost 9% Friday, yet to its credit did see a very strong bounce off almost precise 50 day SMA support. Or an ALKS, a great looking chart going into last week where it fell 8.5% recording a bearish outside week in the process. It will try to find some comfort at its own 50 day SMA here as JAZZ did. Some software leaders like SPLK flunked last week. SPLK reversed almost 15 handles from its intraday highs after earnings came in. Fellow peer in the group which has also been a relative new issue CSOD fell hard Friday and continued its march lower Monday. When leaders in the best performing groups start to behave erratically it is a good time to let things play themselves out and see where the dust settles with small positions. Live to trade another day.

This article requires a Chartsmarter membership. Please click here to join.