Markets fell Friday after quadruple witching expiration, and finished near lows for the session. Bearish action indeed but could it be something more than the volatility associated with the expiration? The Nasdaq took the brunt of the weakness Friday as it fell 1%. That loss ensured a fourth straight week of underperforming the S&P 500. That markets are taking on a much different complexion in 2014 than last year as the Nasdaq handily outclassed the S&P 500. On a YTD basis however the S&P 500 still has some work to do as it is higher by 1% compared to the Nasdaq’s 2.4% yearly advance. Perhaps this year will carry the theme of strong energy, industrial and financial names dominated by the S&P 500. Retail was in focus today as the weak group, although it has been gaining some steam as evidenced by ANN, spewed out some more disappointments in NKE, which lets admit it is now UA’s red headed stepchild. It fell 5% Friday, and recorded a bearish outside week in the process. The round 80 handle was tough to get through last December and this month almost precisely. TIF, like NKE put in a poor report Friday and fell marginally. Software issues persist and it is not a coincidence that bad news seems to find the group. Fragile sectors that demonstrate vulnerability tend to continue that way. DATA sliced its 50 day SMA Friday en route to losing 7% and is now down 4 weeks in a row and almost 20% from its all time highs just above the big round par figure. SYMC lost 13% today, and Monday VRSN displayed instability. Be aware of what groups are being rotated out of and which industries are the beneficiaries of that capital being deployed.

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