Markets slipped Thursday and finished hard upon their lows with the Nasdaq leading the way down unsurprisingly falling 1.2%. The S&P 500 fell by .9% and the Dow which we rarely follow slipped 1.2% and it was the only benchmark of the previously mentioned 3 that did not spend any time at all in positive territory today. AAPL certainly had an impact on the Dow, as well as being the largest company on the Nasdaq, being a cap weighted index and it slumped an additional 3.1% today following the earnings slide on Wednesday. We continue to pound the table that the Nasdaq underperforming the S&P 500 is a bearish scenario, as a healthy, vibrant market will be reflected by enthusiasm within. The tech heavy index is now on a 6 session losing streak and heading into Friday is lower by 2.1% and will most likely have consecutive weeks declining for the first time in 10 tomorrow. The was a flurry of M&A activity, from a diverse set of industries, with the big one in the healthcare sector with ABT buying STJ, and ORCL swallowing TXTR in the tech space and one would have thought that would bring a more joyous mood (CMCSA is taking out DWA in the media group). The S&P 500 for the second straight day touched the 2099 handle but was unable to penetrate the round 2100 figure and for the week thus far has declined .75% and last weeks bearish shooting star candle is now rearing its ugly head, and confirmation would be a weekly CLOSE tomorrow underneath the week ending 4/22’s finish of 2073.65. Among the ten major S&P sectors it was tech that slumped the most by 2%. Below is the chart of SYMC that we examined in our Friday 4/15 Game Plan which we were WRONG about and highlights why especially in this current climate it is difficult to hold into earnings.
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