Markets made it a 4 session losing streak to end the week, and after a promising start on Monday, those gains more than evaporated. The Nasdaq lost .5% Friday and the S&P gave up .3%, and for the week the Nasdaq dropped 1.3%, its second weekly fall better than 1% in the last 3 weeks. The week also recorded a bearish engulfing candle and remember the week ending 10/7 registered a bearish harami, both near all time highs. The benchmarks are indeed feeling heavy. The S&P 500 did record some bearish weekly doji candles in late July and early August, giving some earlier foreshadowing that potential weakness was imminent. With all the negativity, both of the aforementioned indexes are just 3% from recent all time highs, a good showing. However the bears may point out that they have plenty to drop if some momentum to the downside gains steam. On a weekly basis the best performing groups were the most defensive in nature with the utilities and staples acting the best with the XLU higher by 1% and the XLP rising .8%. Keep in mind the XLU is still underneath both its 50 and 200 day SMAs and has the appearance of a bear flag and is on the verge of a death cross. Healthcare, via the XLV, was easily the softest sector giving up 2.8% and the ETF is now lower 9 of the last 12 weeks and 11% off most recent 52 week highs. Some former heavyweights all reported this week and today AMGN was smoked to the tune of 9.6% and it is now in the lower range on a weekly basis between the round 140-180 numbers it has been trading in since late ’14. BIIB rose 3.7% on Wednesday and after having difficulty CLOSING above the round 300 number today it confirmed Thursday bearish engulfing candle losing another 2.5%. CELG rose 6.4% Thursday after releasing and but the last 2 sessions was unable to finish above a downward sloping 50 day SMA. We highlighted SRPT in our Friday Game Plan this week and below is how the name stands as of the end of the week.
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