Markets showed some composure Thursday as they showed some late mettle finishing off session lows. The S&P 500 was lower by .1% and the Nasdaq closed down .3% after being lower by .9% in the late morning hours. Heading into Friday both benchmarks are poised to make it 6 consecutive weeks of gains, with the Nasdaq higher by 1.5% and the S&P 500 by 1%. FB scored a healthy 5% jump after earnings, almost exactly what the options where pricing in for a reaction. Not all tech plays were strong today and below is the chart of PANW we posted last month and this former best of breed name still looks mired in a downtrend. The stock is looking at a possible 6th down week in its last 7 almost the exact opposite of the Nasdaq and obviously displaying poor relative strength. Earnings are still coming in heavy and we have seen some bifurcating action. Looking at it FB has been a leader and producing a nice jump today. On the flip side laggards will be laggards, as demonstrated by both FEYE and WFM Thursday. WFM down almost 50% from recent 52 week highs, fell 2% today but did record a decent reversal to CLOSE above the round 30 number. FEYE lost 23% today and it was it second consecutive negative earnings reaction with a drop of 6.8% on 7/31 too (it rose 4.9 and 11% on 5/1 and 2/12). Others in the cyber security space having problems include FTNT which slipped 19.3% after its latest earnings report on 10/23. AVG recorded its second straight disappointing earnings reaction with drops of 16 and 8.1% today and on 8/6. Perhaps that is why we have seen weakness in the general of the group PANW. It could only keep the group afloat for so long.

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