The Down Trend Continues...

DJIA - 106.91, -0.93% SP500 - 4.77, -0.37% NASDAQ Comp. - 5.74, -0.25% Russell 2000 - 0.28, -0.04% Oil closed at $140.21 up 57 cents Oil moved higher to a new all-time high on Friday after breaking out of its pennant pattern on Thursday and the broad markets fell lower.. All four indices traded lower on Friday. Each of them traded only slightly above Friday’s close. None of the indices traded anywhere near the R1 horizontal resistance of Thursday large black candle. Each of the indices fell only a fraction of Thursday’s move which indicates that selling momentum at least slowed down on Friday. Decliners led advancers 1,969 to 1,164 on the NYSE and 1,732 to 1,171 which was stronger than Thursday. There were 235 new 52-week lows on the NYSE and 127 on the Nasdaq. There were only 18 new 52-week highs on the NYSE and only 12 on the Nasdaq. The DJIA barely moved above Thursday’s close and formed a lower high and lower low as it finished Friday with another large black candle. Friday’s candle did have a lower shadow showing some buyers did buy Friday afternoon. The S&P (SPX) also traded only slightly above Friday’s close while forming a lower high and lower. The candle was more of a spinning top as the S&P was stronger than the DJIA. The lower shadow on the candle shows buyers were taking positions on Friday afternoon. The Nasdaq formed a lower high and lower low while forming a hammer like pattern. The hammer has a lower shadow at least twice as long as the body. Today’s lower shadow was more like four times the body size which was quite small. Again buyers did buy Friday afternoon. The Russell (RUT) was the strongest of the four broad indices and finished almost unchanged forming a doji pattern. Now that downward momentum slowed on Friday, watch to see if any upward momentum begins to appear on Monday. If it does remember the R1 resistance from Thursday’s large black candle. If sellers take over again watch price action as it moves to the price targets we have posted this week. Uptrending Ag-related stocks bounced in their six day bull flag pattern. POT bounced with a bullish engulfing pattern. MOS bounced with a bullish engulfing pattern. CF bounced with a piercing line pattern which was almost a bullish engulfing. AGU bounced with a bullish englulfing pattern. MON bounced with hammer that also formed a bullish harami. Coal stocks also moved higher. KOL the coal etf bounced off its 30 DMA with a piercing line pattern. BTU bounced forming an inside day. ANR bounced forming a higher high and higher low large white candle making a new closing high. CNX bounced forming a morning star pattern. MEE bounced with a bullish engulfing pattern. Chart Signals alerted you to these bounce opportunities in our early Friday post. SCHN bounced in its three day bull flag with a large bullish engulfing pattern. Earnings on 7/1. CLF formed a bullish harami in the third day of a bull flag. X also for a bullish harami in the third day of a bull flag. USO moved to a new high after breaking out of its pennant pattern on Thursday. In Consolidation V bounced with a large bullish engulfing pattern. FWLT bounced with bullish engulfing pattern. GS made lower high and lower low while breaking below its 20 and 30 DMA. Down Trending SOHU bounced forming a bullish engulfing pattern. MER formed a lower high and lower low after breaking support on Thursday. MS formed a lower high and lower low spinning top. LEH formed a lower high and lower low spinning top in a potential double bottom if the stock fails to break support.

Friday’s Action Moving Up: STRA, POT, ANR, MOS, SCHN, SOHU, CNX, V, BTU, MEE, CF, AGU, FWLT, AAPL CLF, X, CELG, GRMN, DRYS, MON, NUE, MTL, NKE, USO Moving Down: FSLR, MA, RIMM, IPI, PCLN, GS, AMZN, BIDU Intermediate Term Market Trend: Down Short Term Market Trend: Down