ChartSmarter Tuesday Game Plan 2/4/14

Markets crumbled to begin February on Monday, not feeling any warmth escaping the weak January. The tech heavy Nasdaq started the month off on the wrong foot down 2.6%, and its underperformance as of late has been an ongoing concern. Today it sliced its 50 day SMA very convincingly, unlike the 1% drop last Wednesday. Volume again indicated big institutions exiting the door. It also undercut the round 4000 handle which it has been above since taking it out on 11/26/13, with the exception of 12/12 where it closed less than 2 handles beneath. The S&P 500 lost 2.3% Monday getting the week off to a rocky start. If it finishes lower this week, you would have to go back to the weeks ending 7/29/11-8/19/11 to see a 4 week losing streak for the index. The lows of 1101.54 made during that time span were tested intraweek during the week ending 10/7/11 and responded very well, and have been off to the races ever since. Will it be a similar story this time? Utilities led once again as investors are looking for safe havens, although the XLU put in a bearish reversal to finish lower. The TLT is now well above its 200 day SMA, leaving many fooled who relentlessly called for the end to the bond bull market. The SDS which has been beat up for so long is rejoicing in its new found freedom above its 50 day line. 4 of the last 7 days have seen the ETF rise at least 1% on double the average daily volume. How much stamina does it still have left in its tank?