Markets Close Near Friday's Low, Potential Support Break?

DJIA - 45.35, -0.41% SP500 - 11.19, -0.90% NASDAQ Comp. - 26.21, -1.17% Russell 2000 - 10.45, -1.55% Oil closed at $145.18 up 10 cents Keep in mind earnings will continue and pick up this week. Check our list of notable stocks on Monday for the entire week. Also Friday is options expiration. DNA reported earnings after the close today. Sales of its top product, cancer drug Avastin, were higher than expected, earnings were less than expected and DNA raised earnings outlook for the year. DNA was up slightly in after-market trading. Financial stocks moved significantly lower today including money center banks (JPM, C, BAC) regional banks (WM, ZION), insurance companies (AIG, MET, PRU), brokerage stocks (AMTD, PJC, SCHW) and mortgage stocks FNM and FRE. Financial ETF, XLF, was down more than 5%. Index Commentary The DJIA formed an inside day and stayed above Friday’s low an important short-term support level. Today was a new 52-week low. The SPX formed an inside day, penetrated Friday’s low by 0.34 point and also hit a new 52-week low. The Nasdaq formed a slightly higher high and higher low but closed lower for the day. The Nasdaq is still trading about 57 points above its March low. The RUT also formed a slightly higher high and high low while closing down for the day. It is 12 points above its July 7 low and about 21 points above its March lows. The SOX formed an inside day and is still above its March low. Stock Commentary RIMM broke support on Friday and continued forming a lower high and lower low with a target of 102.50. Ag-related stocks AGU, CF, IPI, MOS and POT all formed higher highs and higher lows in the continued support. Look for each stock to continue its uptrend with a Target 1 price of its recent high in late June. Coal related stocks KOL, ANR, BTU, CNX and MEE all formed higher highs and higher lows and all but MEE closed higher for the day also continuing to follow through on their recent support bounce. MEE was down 11 cents. BIDU broke its recent double bottom support and formed a lower high and lower low. FSLR also formed a higher high and higher low, continuing its support bounce move for the seventh consecutive day. It is nearing recent resistance in the 293 area. AAPL gapped up into its bear flag pattern and closed down from the open right at the support line of its bear flag pattern. X, STLD, SCHN and NUE are all in bear flag patterns forming lower highs. X, STLD and NUE formed bearish engulfing patterns today. GS, LEH, MER and MS all formed large black candles today and closed lower continuing their recent down trend. Monday’s Action Moving Up: POT, FSLR, CF, CLF, IPI, MOS, AGU, BTU, MTL, ANR, CNX, AAPL, JASO, FWLT Moving Down: BIDU, STRA, GS, X, AMZN, LEH, V, RIMM, MER, MS, DECK SOHU, NUE, DRYS Intermediate Term Market Trend: Down Short Term Market Trend: Down