ChartSmarter Friday Game Plan 12/4/15

Markets were stung Thursday with Yellen commentary, Draghi disappointment and of course the horrific incident on US soil last night in California. Futures were up nicely in the premarket and then were all over the place and the averages did manage to eke out fractional gains at the open, but just after 11am they started a swift and heavy decline to CLOSE near session lows. The Nasdaq fell 1.7% finding temporary support at the round 5000 number where it looks like the 50 day SMA wants to cross above the 200 day recording a “golden cross”. The S&P 500 sliced right through its 200 day SMA losing 1.4% like a hot knife through butter, and this type of volatility is often associated with topping behavior. We have discussed how strong December could be and why yesterday. But the phrase, which I have never uttered, “this time its different”, could be relevant now. Could what happened in San Bernadino be a game changer? Of course we do not know that and tomorrow mornings job report could should be a stormy end to a very volatile week. The selloff Thursday was broad with each of the major 10 S&P 500 sector groups giving up 1% or more. The strong subsectors have been having a rough go of it as well. Today SNPS from the software group which of course is an “old tech play” recorded its second straight negative earnings reaction with both losing nearly 7%. Firm peer PFPT fell hard after a short seller recommendation. It did record a decent reversal Thursday however. Often on days like today it pays to see what shrugged off the markets woes and one from the same group GDDY could be a good example. Below is how the stock was presented in our Tuesday 11/10 Game Plan.