Markets spent the entire session Friday in negative territory and the recently lagging energy group did lead the way with an advance of 1%. Continuing to be concerning is the action in the Nasdaq which fell .9% on Friday (GOOGL and AMZN were lower by 2.7 and 1.5%) and 1.9% for the week, finishing underneath its 200 day SMA. The biotech’s were predominantly trade there have been weighing heavily. The IBB which lost 4.2% this week, also fell 5% the prior week. Best in breed REGN lost 4.8% this week and BIIB fell 3.2% after slumping more than 15% the week before and is now trading at levels not seen since November ’13. The S&P 500 lost 1.2% for the week and the Dow was the “best performer” dropping 1.1%. The S&P action is a bit worrisome as we spoke last week that it had CLOSED the prior 3 weeks ending between 5/27-6/10 all within just 3 handles of each other. That type of behavior normally will lead to a break, but the directional move is unknown. Of course this week it broke lower and has now fell 6 of the last 7 days and next week will be important to see if there is any follow through to the downside. On a YTD basis the Dow is leading with a move higher of 1.4%, the S&P is up 1.3% and the Nasdaq is losing distance lower by 4.1% in ’16 thus far. On a weekly basis to demonstrate the fragile environment it was the utilities which were the only major S&P sector to rise. The XLU rose .8% and the laggards were the financials and healthcare which slipped 1.8 and 2% respectively. One name in the finnie space that bucked the trend was VNTV that we profiled in our Thursday Game Plan. The stock rose 2.7% in very firm trade bouncing off the round 50 number and 200 day SMA. Volume was robust Thursday the day BEFORE quadruple witching may have elevated it.

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