Housing & Financials Weak, Oil Up, Markets Down

DJIA - 283.10, -2.43% SP500 - 29.65, -2.31% NASDAQ Comp. - 45.77, -1.97% Russell 2000 - 16.80, -2.34% Advancers & Decliners NYSE 604 2,565 NASD 905 1,975 Oil closed at $125.49 up $1.05 The initial jobless claims report came in at 406,000 higher than forecasts of 375,000. Existing home sales came in at a seasonally adjusted 4.86 million lower than the forecast for 4.94 million and lower than May’s 4.99 million level. These worse than expected economic reports prompted traders sell to financial and home building stocks. XLF was down $1.39 or -6.19%. SKF, the ultra-short financial ETF, rose $13.48 or +11.53%. XHB, the homebuilders ETF, was down $1.89 or – 10.11% On Wednesday the candles indicated on the DJIA that momentum is slowing down, on the SPX a possible short-term pull back, on the Nasdaq if a pull back occurs and on the RUT forming a shooting star pattern and sure enough a pull back did occur. Each index fell below the rising support line of the counter-trend support bounce bear flag pattern of the past week. Index Commentary The DJIA fell below its 30 DMA and formed a bearish engulfing the egulfed previous four days...not only did momentum slow down from yesterday it reversed...broke S1, S2 and S3 level of Tuesday's candle...the index stayed above the 50% Fibonacci retracement at 11,262.

The SPX bounced down from the resistance at its 30 DMA and formed a bearish engulfing pattern...making the short-term pull back...it fell below its 20 DMA...and fell below the S1 and S2 levels of the Tuesday July 22 candle...the SPX stayed above the 50% Fibonacci retracement is at 1,245.

The Nasdaq bounced down from its 30 DMA...it formed a bearish engulfing pattern...the Nasdaq fell to the S1 level of Tuesday's large white candle as a pull back occured...closed at its 20 DMA...stayed above the 50% Fibonacci retracement at 2,258.

The RUT formed a bearish engulfing pattern that confirmed Wednesday's shooting star pattern...is trading above its 20 and 30 DMA...bounced down from its 61.8% Fib retracement of the down trend started on June 5 and broke below the 50% Fib retracement level...fell below Tuesday's S1 level...the fast line of the 2-line MACD stayed above above the 0 line...we waited a day and the RUT did not stay above its 50 DMA so no intermediate up trend status yet. Earnings Watch Wednesday AMC/ Thursday BMO Earnings Moving Up: AMZN, BIDU, QCOM, CELG, STRA

Wednesday AMC/ Thursday BMO Earnings Moving Down: AEM CDNS, CTXS, WFR, FLIR, POT, LUV Thursday’s AMC Earnings After Hours Market Moving Up: JNPR, MCHP Thursday’s AMC Earnings After Hours Market Moving Down: WDC, WYNN After-hours: JNPR +2.28, MCHP +1.50, WDC -3.61, WYNN -2.84 ATM August Straddle Cost at Close: 23 JNPR 2.48, 30 MCHP 2.80, 35 WDC 4.35, WYNN 15.35 Stock Commentary POT, MOS and AGU broke support forming lower lows KOL, BTU, CNX and MEE continued moving lower BIDU, AMZN and CELG gapped higher on earnings IBM closed at its all-time high of 130.00 and if it successfully breaks out of 130 would have a price target of $143. Thursday’s Action Moving Up: BIDU, STRA, AMZN, FSLR, CELG, SOHU, CNX, MON, USO Moving Down: MTL, MA, AGU, GS, AAPL, DECK, POT, SCHN, MER, X, DRYS, MOS, FWLT, V, RIMM, NUE, IPI, LEH, BRCM, MEE, CLF, ANR, UAUA, MS, JASO, NKE, GRMN, EBAY, SBUX, PCLN, EXPE Intermediate Term Market Trend: Down Short Term Market Trend: Up