ChartSmarter Friday Game Plan 6/5/15

Markets fell Thursday with the Nasdaq down .8% and the S&P 500 down .9%. Small cap names took an even harder blow as the S&P 600 dropped more than 1% and that is to be monitored as they tend to lead. The S&P 500 was damaged the most today as it sliced its 50 day SMA and slipped below the round 2100 figure. The 50 day SMA has not been the most reliable indicator as it sliced the line plenty of times this year only to quickly recapture it. The index is still less than 2% off all time highs, but lets keep an eye on the slope of the 50 day SMA as well. It is looking like its flatlining and a turn downward would be the first such move since last October. Four of the last 8 sessions CLOSED at the lows for the session, a bearish sign. For the week the S&P 500 is lower by .5% and depending on tomorrows close, after an employment number which can shake things up, could be the third consecutive week CLOSING in or at the bottom of the weekly range. The Nasdaq is lower by .2% heading into Friday. Select sectors are helping keep the market afloat, although some water in being taken onboard. They include semis, software and healthcare and thats where plenty of consolidation is going on. Keep in mind the strongest groups will tend to see the most activity. We all hear of the semiconductor news, but plenty of software names have been taken out this year including SNCR INFA ADVS RALY. OPK in the healthcare space looks to swallow BRLI announced today and the acquirer OPK sank 15%.