ChartSmarter Wednesday Game Plan 3/26/14

Markets gained ground Tuesday, and at the expense of sounding like a broken record, the Nasdaq was the laggard. Volume was timid, not what you like to see on a rebound, but the market looked fragile around mid session falling from morning highs. It had every reason to roll over but found some strength to finish in the black. Remember bear market characteristics are starting high and concluding upon the lows. Software again was a drag on the techs as SPLK DATA NOW CSOD all fell in the neighborhood of at least 4%. Concerning is that these names are relatively new issues, and they normally will lead there more mature peers. Perhaps one issue is the plethora of IPO’s that have come public just in the last month. Doing my research last night I counted 6 in March alone, and when this much are rushed into the marketplace it can be an indication of at least a short term top. Names like ATEN AMBR BRDR QTWO PCTY CSLT. Almost all of these names are in correction mode down 10% from their recent highs, and CSLT is almost 40% from its opening day high. In the retail space COUP put in a nice reversal today rising 11%. The sluggish showing for the IWM today was something to keep aware of.