Oil Rises...Financials, Broad Markets Fall

DJIA - 130.84, -1.14% SP500 - 11.91, -0.93% NASDAQ Comp. - 32.62, -1.35% Russell 2000 - 11.94, -1.61% Exchange NYSE NASD Advancing 844 778 Declining 2,262 2,054 Oil $113.77 +$1.66 Gold $805.70 +$11.10 $SOX 361.57 -8.37 Strongest Sectors: XLE +3.59%...XLU +0.54%...XLV -0.45% Weakest Sectors: XLF -2.92%...XLY -1.86%...XLK -1.75% Concerns continued in the financial sector, rising gold and oil prices sent the broad indices lower. XLF was the weakest sector for the second day in a row. Semiconductors were weak also. Steel, coal, oil, gold and Ag-related stocks were strong. Our short-term trend status is down. XLF broke below last weeks low and fell to the horizontal support level of its current sideways trend around 19.75. Watch today’s low as an important support level. A successful break below this level will change the intermediate term trend of XLF to down. XLE formed a bullish engulfing pattern on rising oil prices today. The intermediate term trend is still down. The short-term trend is neutral or sideways. Sector Watch Up Trending: XLI, XLK, XLP, XLV, XLY Sideways: XLB, XLF, Down Trending: XLE, XLU, Index Commentary The DJIA broke down through its 30 DMA and its rising support line and the August 8 S3 support level…as we posted yesterday this turns the short-term trend to down and the intermediate term trend to neutral…Tuesday’s close represents a 50% Fibonacci retracement from the July 15 low. The SPX broke down through its 20 DMA and closed at its 30 DMA and at its August 8 S2 level…the intermediate term trend shifts to neutral and the short-term trend to down…Tuesday’s close is just below a 38.2% Fibonacci and still above the 50% Fibonacci retracement. The Nasdaq again closed below its 200 DMA…broke last weeks support low…bounced at the August 8 S1 level…is above its 20, 30 and 50 DMA…the short-term trend is down with a break below 2,400…current retracement is still above the 38.2% Fibonacci level from the July 15 low. The SOX fell below its 50 DMA and is still above its 20 and 30 DMA…the short-term trend is down with the break below Monday’s low and its 50 DMA…current retracement is a 38.2% Fibonacci since the July 28 low. The RUT formed three black crows and turned the short-term trend down on Tuesday with the break below the August 11 S3 level of 732…closed above its 200 DMA for the eighth consecutive day and 9 of the last 10 days…Tuesday’s low is between the 23.6% and 38.2% Fibonacci levels. Stock Commentary Up Trending RIMM formed a doji as it held above its 50 DMA…consolidating sideways for 8 days AAPL formed a spinning top for its third consecutive down day…still above 50 DMA AMZN three black crows falling below the August 11 S1 level…still above the S2 and S3 levels NIHD fell below horizontal support and its 20 and 30 DMA…appears to have broken the neckline of a head and shoulders pattern…H&S target 46.50 ESRX confirmed Monday’s shooting star and bearish harami and held above the breakout of long term horizontal resistance in the 74 area… watch if support holds UAUA bearish engulfing pattern with rise in oil prices on Tuesday NDAQ held support at the August 8 S3 level WRC fell from resistance forming potential double top ONXX confirmed Monday’s shooting star and bearish harami…held above August 14 S1 level HANS formed shooting star or inverted hammer? held above August 14 S1 level and above its 50 DMA Down Trending POT confirmed bullish harami inverted hammer with a bullish engulfing MOS confirmed bullish harami and inverted hammer with a bullish engulfing X confirmed its bullish harami with a bullish engulfing pattern FWLT spinning top did NOT confirm Monday’s bullish harami at its long term support area of 46 CNX formed a bullish engulfing AGU confirmed Monday’s inverted hammer with a bullish engulfing…potentially forming a head and shoulders bottom SCHN formed a spinning top (mini) bullish engulfing at 66.50 support area BTU formed a bullish engulfing rising to its 20 DMA Sideways Trending AMLN formed hammer like spinning top at its 50 DMA…volume dropped to 8.4 million shares CF formed a bullish engulfing FSLR formed a spinning top…bearish harami? CLF formed a shooting star confirming Friday’s bearish harami Tuesday’s Action Moving Up: X, MEE, BTU, POT, CNX, CF, AEM, MOS, AGU, FSLR, BIDU, NUE, GDX, IPI, LDK, MTL Moving Down: DECK, CELG, IBM, AAPL, AMZN, NIHD, ONXX, WRC, MS, LAMR, PCLN, DRYS, GS, LEH, V, UAUA, AMLN, RIMM, BRCM, COH, PNRA, INFY, SNDK, NDAQ, MER, CLF Intermediate Term Market Trend: Up Short Term Market Trend: Down