Markets certainly did not resemble the “turnaround Tuesday” type of day that has really propelled the markets higher. The Nasdaq took the biggest bruising Tuesday as it fell 1.4%. Some of the big names in the benchmark like AAPL shied away from the round 600 handle. GOOGL is now quickly approaching its 200 day SMA which it bounced off nicely last Monday. Will it do so again if retested so rapidly? MSFT fell beneath its 50 day SMA today. TWTR plummeted 17% as its lock up expired hitting all time lows in just gigantic trade, not exactly demonstrating large shareholders belief in the long term story of the company, letting shares go at more than 40% off highs made the day after Christmas last year. That head and shoulders pattern we discussed last week with the Nasdaq is really starting to take shape. The right shoulder is slightly lower than the left one, but the neckline is right at both the round 4000 handle and 200 day SMA support. When more than one price points or technical spots combine at one entry, the pivot takes on more significance. The semiconductor group has to be weighing on the tech index as well. We have already spoken of XLNX KLAC trying to find support at their respective 200 day SMAs following earnings. Add to that list SLAB and VECO. The latter was not so fortunate to find support there Tuesday dropping 7%. ODP bucked a fragile tape today jumping 16%. We do not follow such low priced names, but the fact that they are closing over 400 stores speaks volumes on the economy in my opinion. That latest 0.1 GDP figure perhaps was not a fluke.
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