Markets finished modestly in the red Tuesday as the S&P 500 and Nasdaq slipped by .3% (the Nasdaq was in positive territory briefly in the morning hours). Again it was the Russell 2000 that was concerning as it gave up .7% and is currently testing its 50 day SMA which looks like its beginning to flatline. There is some debate as to whether a support line that is touched multiple times becomes firmer because of it or weaker. Time will tell here and the benchmark still must be given the benefit of the doubt until proven otherwise. The indexes did post their first back to back losses since January (the S&P 500 lost ground just 4 days in all of February and 3 of them CLOSED in the upper half of the daily range, a bullish trait). Selling was broad today as all of the major S&P sectors fell and it was energy and healthcare that lagged the most. Energy as we spoke to yesterday is at an inflection point. The underlying commodity seems to be range bound but the equities within are anything but. I still believe this could be a good risk/reward entry for many names in the space as your stop would be very close to todays prices. The transports which are directly impacted by the price of crude, of course it is a very diverse group, are at an important spot as well. The IYT is spooning its rising 50 day SMA as well and the ETF has been above that line since early last July. The action in FDX was a bit worrying as it is on a current 4 day losing streak after an upgrade by BMO this week, although it totals just 4% and looks like a double bottom with handle pattern is taking shape (and volume within the handle has been soft just what you want to see). The IBB shed 1.6% and is having issues with the round 300 number surprisingly and it remains to be seen if this action so far this week is merely a bear trap. Below is the chart of AZN, and how it appeared in our Game Plan Friday 3/3, which today recorded a decent reversal off the 200 day SMA and this name has a nice dividend yield to boot.

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