Markets could have very well undergone a trend change Friday, as every major sector was lower by at least 1%. That is a pretty bold selloff with the financials down 1% “performing” the best. The S&P 500 fell 1.4% Friday and for the week was lower by 1.6% and has now declined 6 of the last 10 weeks. It is now clinging to a .6% YTD gain. On the bullish side it did CLOSE just above a prior 2065 double bottom trigger taken out on 2/10 gaining 1.1% although volume never confirmed the signal. The Nasdaq lost 1.1% Friday and is higher by 4% YTD being the clear leader of the big 3 benchmarks. A look on its weekly chart shows a bearish outside week at decade plus highs and finding difficulty at the round 5000 figure. In fact the last 2 weeks resemble bearish shooting star patterns, but to keep things in perspective we still remain just 1.6% off recent 52 week highs. The worst performing sector Friday was the utility group which was hit to the tune of 2.7%. Keep in mind this was the top performing group in 2014 up 26% and is a good example of investors chasing prior years winners. In 2015 the XLU is off by more than 8% and its slope mirrors that of a black diamond ski course, extremely steep. The group was hit on the belief that rate hikes may be coming down the pike after the Friday jobs report, offering some competition.
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