ChartSmarter Wednesday Game Plan 9/10/14

Markets fell Tuesday with the Nasdaq taking the brunt of the selling. It dropped .9% and as we spoke of yesterday that 4600 figure has just manhandled the index. Notice for the third time in the last 5 sessions it reversed to close at lows for the day. Volume was firm as well each of those 3 down days compared to the tepid trade on the 2 advancing days. Sure AAPL has begun to trade wide and loose, hallmark bearish characteristics, with another very volatile day Tuesday. As we mentioned not too long ago the soft action so soon after a breakout from a 99.54 cup with handle pivot point on 8/19 should have raised some red flags. The move came on solid trade and the long base that started the week ending 9/21/12 should have really jumpstarted AAPL to powerful gains. It has done just the opposite. The Nasdaq is also taking on water from the erratic behavior from its 7th largest component GILD. Last Friday the best of breed biotech play recorded a wild session. This type of conduct is very typical of what happens near tops for stocks. Bullish, calm trade is what you want to see, and what AAPL and GILD are giving you should warrant some concern. The S&P 500 is now lower by 1% for the week and has fallen 5 of the last 6 days. Perhaps this slight move above the big round 2000 handle, we will look back upon as a bull trap.