Markets were soft Wednesday and it was expected after the earnings disappointments after the close Tuesday. The Nasdaq gave up .7% on the backs of AAPL falling 4.4% but finishing well off session lows. MSFT did not help the tech heavy benchmark falling nearly 4%. Both stocks make up for almost 12% on the Nasdaq. The S&P 500 lost .2% and is drifting further away from its 2130 double bottom pivot, although volume is light and perhaps it is building a handle on that base. Remember it takes at least 5 days for a handle to be considered legitimate. Tech may have taking a bruising today, and energy was happy to join in the misery. The sector dropped 1.3% and is just mired in a nasty tailspin lower with the XLE now 30% lower from recent 52 week highs. Earnings are coming in hot and heavy and some today that were smacked around included BEAV and TUP, surrendering 12.3 and 8.3%. BEAV was a former best of breed aerospace play which is now lower by more than 30% off its recent 52 week highs and today sliced the round 50 handle which did act as support the week ending 10/17/14. Below is the chart of TUP and how it appeared in our Thursday 6/18 Game Plan which were WRONG with our interpretation. It is a good example of why one should keep losses under control. Todays drop was its fourth poor reaction in its last 5 releases. Previously it fell 3.7, 12.1 and 10.6% on 4/22, 10/22 and 7/23/14 (it jumped 11.6% on 1/28).
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