Wide Trading Range Monday Ends Down as Oil Falls

DJIA - 56.58, -0.50% SP500 - 10.59, -0.84% NASDAQ Comp. - 2.06, -0.09% Russell 2000 - 7.52, -1.13% Oil closed at $141.37 down $3.92 Oil moved lower today presumably on profit taking. OIH, oil service ETF dropped 2.33% while XLE, the energy sector ETF fell 2.51%. USO the etf that holds oil futures fell 1.60%. Decliners again led advancers 2,225 to 943 on the NYSE and 1,924 to 1,010 on the Nasdaq. Sector/industry ETFs in semiconductors (XSD), technology (XLK), consumer staples (XLP), retail (XRT) and Materials (XLB) were higher today. The other twelve sector/industry ETFs were lower today. The DJIA formed an outside day with a trading range of 278 points, closing just above last Wednesday’s 52 week low. Watch the key short term R1 resistance level of the June 26 large black candle around 11,625 on any support bounce. The trend is still down until more technical evidence shows up on the chart. The SPX hit a new 52-week low today, its lowest close since July 2006. Today was also an outside day, a spinning top with a 33 point range day. Watch the R2 and R3 levels on the July 2 candle as short-tern resistance areas. The Nasdaq also formed and outside day with a 62 point range. Watch the short-term R2/R3 horizontal resistance area on the July 2 large black candle should the index begin to bounce. The good news for the Nasdaq was the PHLX SOX semiconductor index rose today for the first time in seven trading sessions. Today formed a higher low and higher high. This does reverse the down trend but it is the first step if a reversal were to occur. Interestingly enough the support in the SOX came at the 261.8% Fibonacci extension…the accident just keeps happening. The RUT did NOT form an outside day, rather it formed a lower high and lower low. Monday’s low was near the 261.8% Fibonacci extension. Earnings season begins in earnest next week so keep this in mind as you place new trades and as you manage current trades. BIDU bounced off its 38.2% Fibonacci retracement and broke it 20 DMA and paused at the 30 DMA coming out of a potential double bottom. A successful break above 333.07 creates a price target of 363. AAPL confirmed Thursday’s hammer. Currently in a bear flag, closed at its 20 DMA and is still trading below its 30 and 50 DMA. CF bounced above its 50 DMA in a non-idealized morning star pattern. It is still in an intermediate term up trend and is trading just below its 30 and 20 DMA. FWLT is at a major support level at 62.50. A successful break below would give an intermediate term target of 45, it’s March low. CELG had a support bounce after a two day bull flag bouncing off the S1 horizontal support level of the large white candle on July 1. MER broke below its 35 support level on June 23 giving a price target of 30. Today MER hit a low 29.84 achieving the price target predicted by the chart on June 23. Monday’s Action Moving Up: BIDU, AAPL, CLF, CF, NUE, FSLR, DRYS, MTL, IBM, X, BRCM, ANR, CELG, CNX, AGU Moving Down: GS, MA, MOS, IPI, FWLT, SOHU, DECK, V, STRA, NKE USO, LEH, MON, PCLN, POT, MS, MER Intermediate Term Market Trend: Down Short Term Market Trend: Down