The week ended on a down note with mixed bearish and bullish notes. Bulls will be watching the 50-day MA in the NASDAQ and the 20-day MA in the semiconductor index for a bounce on Monday, while the Russell 2000 remains 8 points clear of its 20-day MA. Fibonacci retracements remain important for support in the NASDAQ and the S&P. Unfortunately it looks like bears hold most of the cards with bearish divergences in the MACD firm in all indices. Adding insult to injury was the loss of near term support in the semiconductor index (increasing the importance of the 20-day MA), and a drop below bullish Fibonacci retracements in the NASDAQ 100 and Dow. Selling volume increased in the NASDAQ 100 and Dow, ranking Friday's selling as distribution. Also of note was the loss of support in the NASDAQ 100 to S&P ratio; with tech giving way to large caps there is sector rotation from speculation to safety - typical topping action.

The tech secondary indicators [$NASI, $NAA50 and $BPCOMPQ] inched ever closer to a top. It looks like a top is in place in the $NAA50 with it reversing some 50 points shy of a major historical reversal area. The $NASI and $BPCOMPQ weakened, but have not yet to confirm their tops. There is little of interest for long term buyers (investors) at this stage. Momentum holders and current stock holders are best advised to run tighter stops but don't go for a wholesale sell as indicators lie in an area favorable for exhaustion runs; rapid gains in a short space of time. February should mark an important 5-7 month top.

Newsletter stocks which hit their stop price:
BRNC featured for January 18th as a Free Breakout play and as a Subscriber pick for January 3rd. The Subscriber pick closed for a 19% gain and the Breakout pick for a 5% gain. LLY stop was clipped as it consolidates. The stock closed at the 50-day MA increasing the chance for a bounce. The stock featured to Subscribers for December 8th and as a free Breakout for December 28th. The Subscriber feature closed for a 5% gain, and the Breakout play for a 3% loss. MCRI hit its raised stop for an 8% loss. But the earlier December 29th Breakout play closed for a 9% gain, and a November 2nd Subscriber play for a 25% gain. WRES featured for January 13th as a Breakout and as a Subscriber play for December 21st. The stock did close at 50-day MA support, but for my purposes it is a stop hit for an 8% gain in the Subscriber play and a 7% loss for the Breakout play. ELGX was a Subscriber play for January 17th and closed for a 11% loss, but did finish right on the 50-day MA so watch for a bounce on Monday.

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