ChartSmarter Wednesday Game Plan 7/30/14

Markets displayed some bearish traits Tuesday as benchmarks closed near lows for the session with selling late. The Nasdaq finished basically UNCH and the S&P 500 fell .4%. Volume accompanied the move lower which heightened concerns. You can blame whatever you would like on the selloff, but technicians must pay attention to the price action. Some days stocks will ignore the Russian sanctions, sometimes they will implode. They may brush off the Israel/Gaza conflict one day and succumb the next. Bottom line, filter out the noise. Bears are starting to get bigger helpings of porridge these days, but markets still have largely ignored concerning developments. How long will that scenario play out? Who knows, but the action in the top rated transports should be worrisome to shareholders. Rail equipment plays are acting well like WAB which reported nice earnings last week, and TRN did so after the close today, but rails themselves are acting poorly. UNP lost the round 100 figure today and its 50 day SMA, which has held up since last November. It is on its first 5 day losing streak in over a year. Names like KSU NSC are lower by almost 4% this week thus far. EXPD’s 50 day was sliced in active trade today. UPS made an awful “delivery” Tuesday after earnings and the markets largely brushed that off early. It like UNP lost par Tuesday and you can almost feel Mr. Markets fatiguing quadriceps as it attempts to pull this aging bull on its back.