ChartSmarter Tuesday Game Plan 3/11/14

Markets rebounded nicely Monday after being down more than .5% early on. Both the Nasdaq and S&P 500 finished close to UNCH. The biotechs continue to have their issues as the IBB lost ground for two consecutive weeks and they way the ETF closed was not pretty. The two weeks were mild losses of 1.5-2% declines, but closing in the lower half of their intraweek ranges. They have been a powerful group and is their recent weakness to be perceived as a warnings or healthy rotation? A number of the big names did receive precise 50 day SMA support Friday, among them BMRN REGN CBST VRX AMGN. A look through the best performing sectors thus far in 2014, healthcare and utilities fails to inspire confidence. Software names, which were a strong groups are still showing signs of fatigue. Names in that former stalwart sector that are failing to keep up are CNQR FLTX MKTO PRGS CRM SPLK. All the aforementioned names are in correction mode down 10% from their recent 52 week highs. Some sectors that are greeting the biotech and software softness with glee are the chemicals and insurers. These groups have been lagging and they are receiving some rotation. Chips continue to act well as HIMX broke out today from a 15.33 flat base pivot point. Other names looking solid in the group are XLNX ADI AMAT FSL. Unfortunately I read that 20 key employees from FSL were possibly among those missing on that Malaysian air disaster.