Oil Falls Again, Stocks Still Weak

DJIA + 9.44, +0.08% SP500 - 3.32, -0.24% NASDAQ Comp. - 10.52, -0.43% Russell 2000 - 2.63, -0.36% Oil closed at $131.31 down $3.04 For the second day in a row decliners led advancers on both the NYSE 2,085 to 1,091 and the Nasdaq 1,646 to 1,195. The weak rally in the DJIA yesterday and today is holding below the R1 resistance level of Friday’s large black candle. The DJIA did manage to form a slightly higher high and low on its price bar/candle today. The S&P closed lower while forming an inside day. The Nasdaq also formed an inside day as it bounced off of the 50 DMA for the second day in a row. It closed just above the May 23 support low. A break below 2,430 would represent a confirmed double top. The Russell closed below its 30 DMA today. It is now below its 200, 20 and 30 DMA and still above its 50 DMA. The Russell did form both a lower high and lower low in its price bar/candle. Unless the indices can rally above recent resistance levels look for the market to move lower which creates some great down trend opportunities. Today’s Action Moving Up: AAPL, MOS, STRA, GS, PCLN, RIMM, AA Moving Down: X, CLF, DRYS, CNX, BIDU, MA, SOHU, SCHN, GRMN, NUE, BTU, AGU, MON, USO, LEG, V, POT, FWLT, ESRX, MTL, IPI, MEE, BRCM Intermediate Term Market Trend: Down (DJIA, S&P) Short Term Market Trend: Down