Markets spent the full session in the red Wednesday as the concerns seems to be weighing a bit heavier. The geopolitical concerns, the action in the VIX, technology may be just a bit to much for the indexes to handle. And a slight correction that everybody seems to want may be prudent. The S&P 500 finished below its 50 day SMA for the first time in 6 months and the Nasdaq may be doing the same. The Russell 2000 which was a bright spot Tuesday was a disappointment Wednesday falling 1.3%. The Nasdaq and S&P 500 heading into Thursday which will be the last session this week are lower by .7 and .5% respectively. The Nasdaq is testing the bullish engulfing candle from the week ending 3/31 and the S&P 500 is doing the same from its piercing line weekly candle. Looking at individual names that highlight uneasiness is FDX which today sliced through its 50 day SMA losing more than 3% in big volume and it was not able to deal with the double top at the round 200 figure at all time highs last week and the week ending 12/16/16. Technology is being affected by the likes of AAPL which narrowly escaped a 6 day losing streak recording a doji candle, although the damage is limited to just 3%. AMZN seems to be shying away from the round 900 number at the moment and is acting poorly since the bearish shooting star candle at all time highs on 4/5 reversing 24 handles from its intraday high and recorded a bearish engulfing candle the very next day to complete an unorthodox evening star pattern. Looking at individual groups today it was just the utilities and staples that were the only major S&P sectors to advance Wednesday (healthcare rose by a penny). They seem to be hanging around a lot firmer than most anticipated. Perhaps now is the time to be looking at shorts on names that have not participated in the frothy gains since the election. Below is the chart of FPRX and how it appeared in our Thursday 4/6 Game Plan.
This article requires a Chartsmarter membership. Please click here to join.