Old Theme, New Week...Oil Up, Stocks Down

DJIA - 239.61, -2.11% SP500 - 23.39, -1.86% NASDAQ Comp. - 46.31, -2.00% Russell 2000 - 14.23, -2.00% Advancers & Decliners NYSE 861 2,286 NASD 740 2,140 Oil closed at $124.73 up $1.47 The combination of oil prices rising again with financial and housing stocks falling pulled the broader market lower. XLF fell 98 cents or -4.7% and XHB fell 87 cents or -5.12%. Among housing stocks CTX, HOV, MTH and RYL all had large percentage drops today. It was unlikely that this down trend would come to an end without some form of W bottom, double bottom or triple bottom occuring. If the down trend is about over traders should be looking for the next bottom whether it is a higher low, a double bottom or a lower low. In the meantime it is appropriate to be trading to the down side with the intermediate term trend. The bullish haramis on Friday's chart failed to confirm as sellers had enough of a break on Friday and sent today's market lower. Having broken below Thursday's low look for the indices to fall to the next support level. Index Commentary The DJIA after the pause on Friday broke through its 20 DMA with a large black candle.

The SPX broke the Thursday/Friday low support and fell below its 20 DMA.

The Nasdaq fell below its 20 DMA and its 2,275 horizontal support.

The RUT broke below Thursday's low of 700 and below its 20 DMA.

Stock Commentary AMGN was up over 12% after the company reported positive trial results on its osteoporosis drug candidate...reported better than expected earnings after the close and raised their revenue and earnings guidance for 2008. MER fell more than 10% to its low on July 15, a potential double bottom...formed three black crows pattern or three large black candles. AAPL's large black candle that came to the S1 level of the July 22 large white candle is being attributed to health concerns of CEO Steve Jobs. BUCY broke out of the resistance between its double bottom following a positive earnings report. NIHD pulled back to 52.70 on a bearish engulfing type candle, after three storn up days following earnings. Monday’s Action Moving Up: PCLN, FSLR, X, CLF, BUCY, BIDU, CF, USO, NUE, MOS, Moving Down: MA, AAPL, MTL, GS, SOHU, DECK, STRA, RIMM, POT, MER, NIHD, AMZN, IBM, IPI, ESRX, MS, LEH, DRYS, MON, BAM, V, CELG, GRMN, MEE, UAUA, EBAY Intermediate Term Market Trend: Down Short Term Market Trend: Down