Oil Down Almost $4, Stocks Rise Big

In out Tuesday August 5 post we wrote this support break gives a chart target in the area of $98.50. Some readers thought we had rolled off the barrel. Time will tell, but we hope you are not surprised to see oil down $3.97 to $116.o5. We are NOT. We hope you are also not surprised that the markets are up big today. If you are you've not been getting the point of what we have been posting over the past three weeks. Markets are up strong. This should be no surprise since we have been emphasizing the shift in trend over the past three weeks. Dave's Insight: One of the key responsiblilites of a trader is to determine the difference between price fluctuation and trend change. The DJIA is above yesterday's high and above its 50 DMA. The SPX is also above Thursday's high and approaching its 50 DMA. The Nasdaq is 20 points above Thursday's high and has bounced off its 50 DMA. The RUT is back above Wednesday's high and is breaking back above its 200 DMA. As we have been stating for weeks this is the area of the market, small cap, that is leading this market higher. The SOX is up over 7 points which bodes positive the technology, Nasdaq, stocks. Friday's Action Moving Up: MA, RIMM, AAPL, AMZN, STRA, GS, V, DECK, MS, CELG, SOHU, PCLN, LEH, UAUA, ESRX, EBAY, BRCM, MON, DRYS Moving Down: FSLR, POT, X, CF, MOS, BIDU, SCHN, AGU, USO, FWLT, NUE, MEE, IPI, BTU, BUCY, MTL, FNM, CNX