Markets looked like they were going to put in another very solid session, but by the CLOSE it was not to be. After starting the day off with losses near 3/4th’s of a percent they rallied to go green but basically made a complete round trip by 4pm with the Nasdaq lower by .9% and the S&P 500 by .7%. It has run in a very strong fashion and last Fridays spinning top candle at the 2020 figure did indicate a change in trend was potentially upon us. Many have been talking about how PSTG is a good proxy for not only the IPO waters but also for the market overall. If that is the case one has to like what they see as the stock is higher by nearly 20% over the last 3 sessions, and today demonstrated excellent relative strength. Energy, materials and healthcare lost the most ground Tuesday. We know healthcare has been soft and the more people look for a bounce the less likely that is to occur, but energy seems to be had the wind knocked out of it. The shooting star the took place Monday at the round 50 handle and precise 200 day SMA resistance is troublesome. Oil has been what the benchmarks have looked to for direction and it looks like a retest of that flag trigger breakout is going to be retested and as a technician to see a breakout floundering so soon after the move is disconcerting. “Old tech” plays seem to be weighing down the market with EMC giving back almost 3% as perhaps the DELL deal is being frowned upon. Another name in the aging tech arena to keep an eye on is FNSR. Below is how we profiled the name in yesterdays Game Plan and a bear flag pattern could have it accelerating to the downside.
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