ChartSmarter Monday Game Plan 4/28/14

Markets fell sharply Friday with the Nasdaq leading the way lower wiping weekly gains all in one day. It fell .5% for the week and YTD is now down 2.5% YTD. New 52 week lows outnumbered 52 week highs by a 46 to 24 tally, with LNKD being the most recognizable. The S&P 500 declined .1% for the week and still maintains a positive YTD gain of .8%. It closed right at 50 day SMA support, for now. Seems like the consensus is looking for a big drop which is troublesome, because we know the market does its best to confound the most. But the technicals do seem to favor lower prices. An abundance of earnings reports were released this week, and the men were separated from the boys. The semiconductor group which is attempting to hold up the Nasdaq almost single handedly took some serious body blows this week. It would be fine if laggards like ALTR which reported Friday and met precise 50 day SMA resistance recording a bearish outside day, or a CREE which seems to disappoint like its a requirement dropping 12% Wednesday. But leaders KLAC fell like a stone Friday, falling 7% but being comforted by exact 200 day SMA support. TXN slumped more than 4% Friday completely erasing Thursday’s earnings inspired gains. Looking at other groups the stout industrial group had a surprising setback. FLS put in a rare blunder Thursday slicing its 50 day SMA after an ill received release falling more than 5%.