Markets once again displayed weak behavior and keep in mind it is not like they are not giving investors a chance to get out. It is a process, normally a choppy one at tops that we are seeing presently, unlike the slow, gradual tighter trading that accompanies bottoms. This market certainly feels “heavy” and it is not responding bullishly as it has in the recent past when challenged, and certainly not resuming its upward march north. All three of the major benchmarks never saw positive ground Thursday, with a strong selloff at the open that was more than halved by mid day only to lose steam and CLOSE near lows for the session. It is becoming very hard to maintain a positive stance and perhaps the one thing bulls can point to is that almost everyone is expecting some sort of correction. But then again many have been calling for one, some for years. The only importance to technicians is PRICE action and that should be your only guide. The Russell 2000 was among the big losers today as it slipped 1.4%, the Nasdaq by 1% and the S&P 500 fell .9%. The Nasdaq continues to trade underneath its 50 day SMA and today the S&P 500 lost its and the Russell 2000 hung on to its by a thread, and for the week heading into Friday the Nasdaq is down .8% and the S&P 500 by .5%. Looking at individual groups none were able to escape the damage with all of the major S&P groups lower. Utilities CLOSED near the UNCH line and the energy and healthcare groups were hit the hardest with the XLE and XLV off by 1.1 and 1.3% each. The Nasdaq seems to be the center of attention for the weakness and their have been an abundance of IPOs as of late, notably APRN now 27% off highs made just this week. Below is the chart of a recent new issue SNAP and how it appeared in our Wednesday 6/28 Game Plan and it is 41% off its own highs made back in March, the month it started trading publicly.
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