Oils Rises, Stocks Coninue Down Trend

DJIA - 166.75, -1.46% SP500 - 23.39, -1.82% NASDAQ Comp. - 53.51, -2.32% Russell 2000 - 19.25, -2.78% Oil closed at $143.57 up $3.60 After a rally on Tuesday stocks resumed their down trend on Wednesday as oil hit a new all-time high. The drop was broad based as decliners led advancers 2,339 to 826 on the NYSE and 2,141 to 767 on the Nasdaq. There were 228 52-week lows on the NYSE and 169 on the Nasdaq. Each of the indices formed large black candles indicating sellers were clearly in control. As mentioned earlier many of the strong up trending stocks in our watchlist in the ag-related, coal sector and basic material stocks rolled over in a big way. Take the time to look at the charts of Stocks Moving Down to get a sense of the charts falling below important DMA and horizontal support levels. The DJIA hit a 52-week closing low on Wednesday while forming a large black candle the closed slightly above Tuesday’s lower hammer shadow. The DJIA continues to trend down. The SPX also hit a 52-week closing low today while forming a large black candle that closed below Tuesday’s low. The Nasdaq formed a large black candle as it broke below it previous target area of 2,300 from breaking the support of its double top. The RUT hits it head and shoulders price target of 672 with a large black candle. X broke below it 50 DMA horizontal support levels with a large black candle and above average volume. CLF broke below its 20, 30 and 50 DMA with above average volume. SCHN broke below its 20, 30 and 50 DMA with above average volume. ANR broke below its 20 and 30 DMA today. POT broke below its 30 DMA and fell to its 30 DMA. RIMM rolled over and closed near its 200 DMA. Wednesday’s Action Moving Up: GS, USO, LEH Moving Down: FSLR, X, CLF, SCHN, MEE, ANR, CNX, CF, MOS, NUE, POT, PCLN, BTU, MA, RIMM, AAPL, DRYS, MTL, DECK, MON, BIDU, FWLT, IPI, AGU, STRA, AMZN, V, SOHU, CELG, JASO, MER, NKE, BRCM Intermediate Term Market Trend: Down Short Term Market Trend: Down