The major averages fell Friday on mixed volume as tensions between Russia and Ukraine heightened with Russia failing to adhere to commitments made earlier this month. Obama and allies looked to impose further sanctions against Russia. A disappointing earnings report from AMZN with an operating loss forecast for the coming quarter sent the stock down 10% which weighed on the NASDAQ which fell about twice as much as the S&P 500. The NASDAQ was also weighed down by sharp breakdowns in a number of other big-stock leaders, including Netflix (NFLX), Priceline.com (PCLN), Facebook (FB), and LinkedIn (LNKD), to name a few. The NASDAQ avoided a distribution days as volume came in a hair llighter, while the S&P 500 traded slightly higher volume.
Biotechs ETF BBH which represents the former leading group once again closed below its 200-day moving average. One of the current top leading groups ETF SMH which represents semiconductor stocks closed just below its 50-day moving average as KLAC and AMAT both gapped lower after KLAC showed a weak earnings report. We see Celgene (CELG) as a shortable H&S set-up using Friday's intraday high at 144.72 as a guide for an upside stop.
We also see Visa (V) as a short-sale set-up following a late-stage failed-base, using its 200-day moving average at 203.53 as an upside guide for a stop. MasterCard (MA) announces earnings on Thursday, but it is also breaking down through its 200-day moving average and the right shoulder of an H&S formation.