Markets fell Tuesday after a brief thrill in positive territory this morning. The indexes attempted a mid afternoon rally, but the final hour put a dampener on that and they ended firmly in the red. The Nasdaq declined 1.3% while the S&P 500 dropped .9%. Both benchmarks fell further beneath their 50 day SMAs and lost value for a fifth consecutive session, something they did not do in all of 2014. The S&P 500 did manage to close above the very round 2000 figure. The Nasdaq’s largest component AAPL making up just more than 7% of the index managed to put in a decent reversal Tuesday to finish UNCH. It looks much better after todays action as it stands more than 11% off recent all time highs which occurred in late November with difficulty at the round 120 handle. Energy once again was the worst hit sector and the financials were heavy losers with the XLF falling by 1.5%. Best in breed GS has slumped 5% this week thus far and C by 6.5%. C looks like a decent risk/reward play is setting up here right at the round 50 handle. Notice how that number has proven to be both support and resistance dating back to the beginning of last year. In February, March and July of 2014 that number was stubborn to get through. In October that same number became support and it will be interesting to see how that line will act if it is retested this week.
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