Markets were hit hard Friday and the S&P 500 fell 2.1%, and dropped for the first time on a Friday this year. Obviously there is a very small sample but the prior 4 rose 1.2, .4, .7 and .7% on 1/26, 1/19, 1/12 and 1/5. We all know the old saying “So goes January, goes the year.” That should bode well going forward as the S&P 500 rose nearly 6% last month. The index is now less than 2% away from its rising 50 day SMA, a line it has not come into real contact with since last September. The Nasdaq fell 2%, and looking at its RSI it is now touching the bullish 50 threshold where it bounced last September, October and December. Each of those prior examples did indeed touch or nearly kiss its upward sloping 50 day SMA. This time around it is above by just more than 2%. The Russell 2000 which is now just below that line, and is seen as a leading indicator, and we shall see how it responds to this interaction. Last December bounced right off it and November spent a few sessions underneath before recapturing it. AAPL is now 11% off most recent 52 week highs and this name has a big impact on the overall markets as it makes up 11% of the Nasdaq 100. That bogs down the Nasdaq, which puts pressure overall on the big benchmarks. Good news is it is coming into reach of its 200 day SMA near the round 160 number after falling precipitously from the round 180 figure on 1/18. We have talked about good news with earnings many times being bad news for the stocks, and today one could add economic data as the jobs report was very solid. Jobs added, wage gains, etc came in better than expected, but turned out weighing down heavily on prices. All of todays ideas are longs as the major averages are still above the 50 day SMAs and must be given the benefit of the doubt until we see a few CLOSES beneath.

Looking at individual groups, Friday their was nowhere for any sector to escape the carnage. The "best" actor was the utilities for the third day this week and today it fell .7%. The two worst groups were technology with the XLK lower by 3%, hurt by some big cap earnings reactions with AAPL and GOOGL slumping 4.3 and 5.3% respectively (AMZN to its credit rose 2.9%). Energy was torpedoed as the XLE was drilled lower by 4.2% in the third largest daily volume in the last year. On a weekly basis the XLE lost 6.5%, its largest weekly loss since the week ending 1/8/16 and volume was nearly double the weekly average. That cup base pattern that looked visually impressive, now feels deflated and could very well be a double top with almost precise intraweek highs of 78.45 and 78.39 the weeks ending 12/16/16 and 1/26/18. Other notable weekly losses, as you can imagine all the major S&P groups fell hard on the week, the XLK gave up 3.9%, and looking on its chart one can see heavy distribution weeks ending 1.4, and 1.5% the weeks ending 6/16/17 and 12/1/17 all CLOSING at or near the lows for the weekly range and on double average weekly trade as well. The two worst performers were the materials and healthcare cratering with the XLB and XLV punching 5.7 and 5.1% lower.

The transports have been an area of worry for sometime, and this is a critical space as it has its gauge on the genuine health of the economy. The rails have been acting a bit soft with CSX, a former best of breed name now off 8% from most recent 52 week highs after being derailed at the round 60 number with a big bearish engulfing candle on 1/16 at all time highs. We heard from UPS this week after reporting on 2/1 and slumped 6.1%. In fact it lost ground everyday this week declining 12.2% and has lost value 12 of the last 14 sessions. Lately we have been stressing the need to keep a watchlist of names that have been acting well. Below is a prime example of a transport play LSTR and how it appeared in our Wednesday 1/10 Game Plan. It rose nearly 50% since the week ending 8/25/17 off the round 80 number to its intraweek higher of near 120 this week. The stock did break above a bull flag trigger of 107 and did hits its measured move to 118 on both Wednesday and Thursday this week. Overall it has been acting well and this name should be capitalized on your watchlist.

Stocks that can be bought as they pullback into the round numbers are DECK. DECK is a best in breed footwear play higher by 17% YTD and 69% over the last one year period. It has wonderful earnings momentum with FOUR consecutive gains of 7.3, 3.3, 1.6 and 18.8% on 2/2, 10/27, 7/28 and 5/26. The stock is higher 11 of the last 13 weeks, and 8 of those weekly gains were higher by 3% or more. It is acting well POST breakout from cup base trigger taken out on 11/21/17 (full base not seen here). Enter DECK on a pullback toward the round 90 number at 92. On weekly chart one can see headwinds at very round par number weeks ending 9/26/14 and 12/12/14. Add on buy point above 99.98 cup base trigger in pattern more than 3 years long.

Trigger DECK 92.  Stop 85.65.

Stocks that can be bought as they fill in gaps are NUAN ABBV. NUAN is an "old tech" play higher by 7% YTD and 9% over the last one year period. Earnings have been mostly higher with gains of 3.2, 7.8, 4.5 and 8.7% on 11/29, 5/10, 2/8 and 11/18/16 and a loss of 1.8% on 8/9 (REPORTS next Wednesday after the close and on 1/22 rose 9.8% after announcing healthy preliminary results). The stock is higher 6 of the last 11 weeks with three of the gainers higher by more than 6.5%. Enter NUAN with a gap fill at 17 from the 1/19 session and one can add to above a cup with handle trigger of 18.85, in a pattern that began on 5/10/17 which was stopped almost precisely at the very round 20 number.

Trigger NUAN 17.  Stop 16.

ABBV is a healthcare play higher by 19% YTD and 89% over the last one year period and sports a dividend yield of 2.4%. Earnings have been mostly higher with gains of 13.8, 2.6 and 1.6% on 1/26, 10/27 and 4/27 and a loss of 1.8% on 7/28. The stock is higher 18 of the last 24 weeks after bouncing off round 70 number the week ending 8/25. It fell 6.5% this week but that could be forgiven after the previous week rose 17.7%. It trades very taut overall and has received smooth 50 day SMA support which is has found comforting for more than one year now. Look to enter ABBV on a gap fill from the 1/25 session near 111. Remember we know this is a few percent away but volatility is picking up and we stress the need to be patient and pick your spots.

Trigger ABBV 111.  Stop 105.30.

Stocks that can be bought after recent bullish piercing line patterns are GLW. GLW is an "old tech" play lower by 2% YTD and higher by 19% over the last one year period and sports a dividend yield of 2%. Earnings have been mostly higher with a one up one down pattern the last 4 releases. It rose 6.4, 3.7 and 5.7% on 10/24, 4/25 and 1/24/17 and fell 5.6 and 5.3% on 1/30 and 7/26. The stock is lower 2 weeks in a row for the first time since last August and it has found support at the rising 200 day SMA after earnings the weeks ending 4/29/16 and 8/18/17. GLW looks like it is doing so once again and look to enter after the bullish piercing line candle on 2/1 at 30.75.

Trigger GLW 30.75.  Stop 29.50.

Stocks that can be bought as they touch their rising 50 day SMAs for the first time after a recent breakout, often an ideal entry point, are BBY. BBY is a best of breed retail play higher by 4% YTD and 69% over the last one year period and sports a dividend yield of 1.9%. Earnings have been mostly lower with losses of 3.6, 11.9 and 4.5% on 11/16, 8/29 and 3/1 and a big gain of 21.5% on 5/25. The stock fell 8.5% this week, acceptable given the prior 10 week winning streak which rose by a combined 36% and all CLOSED at the top of their weekly range. It has acted well POST breakout from a 63.42 cup base trigger on 12/8 and enter on pullback into 50 day SMA at 69. Be patient and pick your spots in this market.

Trigger BBY 69.  Stop 66.

Stocks that can be bought as they recapture their 50 day SMAs and added to above future valid base triggers are GLNG. GLNG is an energy play lower by 10% YTD and higher by 2% over the last one year period and sports a dividend yield of .7%. Earnings momentum is sour with three straight losses of 2.2, 2.6 and 7.8% on 11/30, 8/30 and 5/31 after a gain of 1.5% on 2/28. The stock lost 7.3% this week and is now on a 5 week losing streak after being rebuffed on a weekly CLOSING basis at the round 30 number between weeks ending 12/22-17-1/26/17. It has traded between the round 20 numbers with support their on a weekly basis the weeks ending 11/4/16, 6/23/17 and again several times from 8/11-11/3/17 (week ending 10/27/17 CLOSED just below registering a quick bear trap). GLNG is now just below its rising 50 day SMA for the first time since breaking above a cup base trigger of 29.28 on 12/21. Enter with buy stop above the line at 27.75, and add to above a double bottom trigger of 30.88.

Trigger GLNG 27.75.  Stop 26.50.

Good luck.

The author is flat.

Trigger summaries:

Buy pullback into round numbers DECK 92.  Stop 85.65.

Buy gap fill NUAN 17.  Stop 16.

Buy gap fill  ABBV 111.  Stop 105.30.

Buy pullback into recent bullish piercing line pattern GLW 30.75.  Stop 29.50.

Buy first touch of 50 day SMA after recent breakout BBY 69.  Stop 66.

Buy stop above 50 day SMA GLNG 27.75.  Stop 26.50.

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Markets were hit hard Friday and the S&P 500 fell 2.1%, and dropped for the first time on a Friday this year. Obviously there is a very small sample but the prior 4 rose 1.2, .4, .7 and .7% on 1/26, 1/19, 1/12 and 1/5. We all know the old saying “So goes January, goes the year.” That should bode well going forward as the S&P 500 rose nearly 6% last month. The index is now less than 2% away from its rising 50 day SMA, a line it has not come into real contact with since last September. The Nasdaq fell 2%, and looking at its RSI it is now touching the bullish 50 threshold where it bounced last September, October and December. Each of those prior examples did indeed touch or nearly kiss its upward sloping 50 day SMA. This time around it is above by just more than 2%. The Russell 2000 which is now just below that line, and is seen as a leading indicator, and we shall see how it responds to this interaction. Last December bounced right off it and November spent a few sessions underneath before recapturing it. AAPL is now 11% off most recent 52 week highs and this name has a big impact on the overall markets as it makes up 11% of the Nasdaq 100. That bogs down the Nasdaq, which puts pressure overall on the big benchmarks. Good news is it is coming into reach of its 200 day SMA near the round 160 number after falling precipitously from the round 180 figure on 1/18. We have talked about good news with earnings many times being bad news for the stocks, and today one could add economic data as the jobs report was very solid. Jobs added, wage gains, etc came in better than expected, but turned out weighing down heavily on prices. All of todays ideas are longs as the major averages are still above the 50 day SMAs and must be given the benefit of the doubt until we see a few CLOSES beneath.

Looking at individual groups, Friday their was nowhere for any sector to escape the carnage. The "best" actor was the utilities for the third day this week and today it fell .7%. The two worst groups were technology with the XLK lower by 3%, hurt by some big cap earnings reactions with AAPL and GOOGL slumping 4.3 and 5.3% respectively (AMZN to its credit rose 2.9%). Energy was torpedoed as the XLE was drilled lower by 4.2% in the third largest daily volume in the last year. On a weekly basis the XLE lost 6.5%, its largest weekly loss since the week ending 1/8/16 and volume was nearly double the weekly average. That cup base pattern that looked visually impressive, now feels deflated and could very well be a double top with almost precise intraweek highs of 78.45 and 78.39 the weeks ending 12/16/16 and 1/26/18. Other notable weekly losses, as you can imagine all the major S&P groups fell hard on the week, the XLK gave up 3.9%, and looking on its chart one can see heavy distribution weeks ending 1.4, and 1.5% the weeks ending 6/16/17 and 12/1/17 all CLOSING at or near the lows for the weekly range and on double average weekly trade as well. The two worst performers were the materials and healthcare cratering with the XLB and XLV punching 5.7 and 5.1% lower.

The transports have been an area of worry for sometime, and this is a critical space as it has its gauge on the genuine health of the economy. The rails have been acting a bit soft with CSX, a former best of breed name now off 8% from most recent 52 week highs after being derailed at the round 60 number with a big bearish engulfing candle on 1/16 at all time highs. We heard from UPS this week after reporting on 2/1 and slumped 6.1%. In fact it lost ground everyday this week declining 12.2% and has lost value 12 of the last 14 sessions. Lately we have been stressing the need to keep a watchlist of names that have been acting well. Below is a prime example of a transport play LSTR and how it appeared in our Wednesday 1/10 Game Plan. It rose nearly 50% since the week ending 8/25/17 off the round 80 number to its intraweek higher of near 120 this week. The stock did break above a bull flag trigger of 107 and did hits its measured move to 118 on both Wednesday and Thursday this week. Overall it has been acting well and this name should be capitalized on your watchlist.

Stocks that can be bought as they pullback into the round numbers are DECK. DECK is a best in breed footwear play higher by 17% YTD and 69% over the last one year period. It has wonderful earnings momentum with FOUR consecutive gains of 7.3, 3.3, 1.6 and 18.8% on 2/2, 10/27, 7/28 and 5/26. The stock is higher 11 of the last 13 weeks, and 8 of those weekly gains were higher by 3% or more. It is acting well POST breakout from cup base trigger taken out on 11/21/17 (full base not seen here). Enter DECK on a pullback toward the round 90 number at 92. On weekly chart one can see headwinds at very round par number weeks ending 9/26/14 and 12/12/14. Add on buy point above 99.98 cup base trigger in pattern more than 3 years long.

Trigger DECK 92.  Stop 85.65.

Stocks that can be bought as they fill in gaps are NUAN ABBV. NUAN is an "old tech" play higher by 7% YTD and 9% over the last one year period. Earnings have been mostly higher with gains of 3.2, 7.8, 4.5 and 8.7% on 11/29, 5/10, 2/8 and 11/18/16 and a loss of 1.8% on 8/9 (REPORTS next Wednesday after the close and on 1/22 rose 9.8% after announcing healthy preliminary results). The stock is higher 6 of the last 11 weeks with three of the gainers higher by more than 6.5%. Enter NUAN with a gap fill at 17 from the 1/19 session and one can add to above a cup with handle trigger of 18.85, in a pattern that began on 5/10/17 which was stopped almost precisely at the very round 20 number.

Trigger NUAN 17.  Stop 16.

ABBV is a healthcare play higher by 19% YTD and 89% over the last one year period and sports a dividend yield of 2.4%. Earnings have been mostly higher with gains of 13.8, 2.6 and 1.6% on 1/26, 10/27 and 4/27 and a loss of 1.8% on 7/28. The stock is higher 18 of the last 24 weeks after bouncing off round 70 number the week ending 8/25. It fell 6.5% this week but that could be forgiven after the previous week rose 17.7%. It trades very taut overall and has received smooth 50 day SMA support which is has found comforting for more than one year now. Look to enter ABBV on a gap fill from the 1/25 session near 111. Remember we know this is a few percent away but volatility is picking up and we stress the need to be patient and pick your spots.

Trigger ABBV 111.  Stop 105.30.

Stocks that can be bought after recent bullish piercing line patterns are GLW. GLW is an "old tech" play lower by 2% YTD and higher by 19% over the last one year period and sports a dividend yield of 2%. Earnings have been mostly higher with a one up one down pattern the last 4 releases. It rose 6.4, 3.7 and 5.7% on 10/24, 4/25 and 1/24/17 and fell 5.6 and 5.3% on 1/30 and 7/26. The stock is lower 2 weeks in a row for the first time since last August and it has found support at the rising 200 day SMA after earnings the weeks ending 4/29/16 and 8/18/17. GLW looks like it is doing so once again and look to enter after the bullish piercing line candle on 2/1 at 30.75.

Trigger GLW 30.75.  Stop 29.50.

Stocks that can be bought as they touch their rising 50 day SMAs for the first time after a recent breakout, often an ideal entry point, are BBY. BBY is a best of breed retail play higher by 4% YTD and 69% over the last one year period and sports a dividend yield of 1.9%. Earnings have been mostly lower with losses of 3.6, 11.9 and 4.5% on 11/16, 8/29 and 3/1 and a big gain of 21.5% on 5/25. The stock fell 8.5% this week, acceptable given the prior 10 week winning streak which rose by a combined 36% and all CLOSED at the top of their weekly range. It has acted well POST breakout from a 63.42 cup base trigger on 12/8 and enter on pullback into 50 day SMA at 69. Be patient and pick your spots in this market.

Trigger BBY 69.  Stop 66.

Stocks that can be bought as they recapture their 50 day SMAs and added to above future valid base triggers are GLNG. GLNG is an energy play lower by 10% YTD and higher by 2% over the last one year period and sports a dividend yield of .7%. Earnings momentum is sour with three straight losses of 2.2, 2.6 and 7.8% on 11/30, 8/30 and 5/31 after a gain of 1.5% on 2/28. The stock lost 7.3% this week and is now on a 5 week losing streak after being rebuffed on a weekly CLOSING basis at the round 30 number between weeks ending 12/22-17-1/26/17. It has traded between the round 20 numbers with support their on a weekly basis the weeks ending 11/4/16, 6/23/17 and again several times from 8/11-11/3/17 (week ending 10/27/17 CLOSED just below registering a quick bear trap). GLNG is now just below its rising 50 day SMA for the first time since breaking above a cup base trigger of 29.28 on 12/21. Enter with buy stop above the line at 27.75, and add to above a double bottom trigger of 30.88.

Trigger GLNG 27.75.  Stop 26.50.

Good luck.

The author is flat.

Trigger summaries:

Buy pullback into round numbers DECK 92.  Stop 85.65.

Buy gap fill NUAN 17.  Stop 16.

Buy gap fill  ABBV 111.  Stop 105.30.

Buy pullback into recent bullish piercing line pattern GLW 30.75.  Stop 29.50.

Buy first touch of 50 day SMA after recent breakout BBY 69.  Stop 66.

Buy stop above 50 day SMA GLNG 27.75.  Stop 26.50.