Oil Up, Down and Up...Stocks Down, Up and Down

DJIA - 224.64, -1.93% SP500 - 23.12, -1.79% NASDAQ Comp. - 22.64, -0.95% Russell 2000 - 12.49, -1.72% NYSE NASD Advancing 694 986 Declining 2,364 1,879 Oil $120.02 +$1.44 Gold $877.90 -$5.10 DXY 74.972 +1.15% $SOX 359.65 +5.45 Strongest Sectors: XLU -0.08%...XLK -0.17%...XLB -0.31% Weakest Sectors: XLF -4.93%...XLI -3.36%...XLY -1.96% Oil was up then down and then up and in that almost perfect correlation we have been posting about for the past three weeks, stocks did the opposite. As oil dropped to almost even for the day stocks rallied and the Nasdaq even went positive for a while. Notice there were about 300 more advancers on the Nasdaq than on the NYSE today. Then oil began rising and stocks fell again. Gold closed down again and the dollar was higher for the fifth straight day. The Strongest Sectors were lower on Thursday. The current sideways “choppy market” is exactly why we have not yet changed our Intermediate Term Trend status to Up. It keeps acting as if it is ready to breakout and then sellers over power buyers. Just keep looking for the break above resistance or below support for the next trend move. Index Commentary The DJIA bounce down from its 50 DMA, showing us that sellers are still at the resistance levels in this neutral market…pulled back to the S1 of Tuesday large white candle…still above its 20 and 30 DMA…so at least for now the break above 11, 600 does not hold and the sideways trading range continues to bounce between resistance and support...AIG down on reported losses was a major drap on the DJIA The SPX like the DJIA failed to penetrate its 50 DMA…traded down to the S1 level of Tuesday’s candle…the breakout of 1,284 fails to hold this time around…bouncing down in a sideways trading range. The Nasdaq actually made a slightly higher high today before trading down and forming a bearish harami…held above the 2,350 resistance, now support, level it broke through on Wednesday…traded back down to the 50 DMA and closed 0.40 points (a fraction of a point) below its 50 DMA. The SOX was up over 5 points on Thursday more than it Wednesday’s gain when the market was up…As we have pointed out for the past two days and in prior posts this gives bullish support to the Nasdaq. This was in large measure the result of INTC, AMD, SNDK, LLTC, XLNX BRCM, MRVL and TXN all trading higher today. Was big money buying semiconductors today? Check out the above average volume on several of these stocks. The RUT fell back below its 200 DMA to the S1 area of Tuesday’s large white candle…is still above its 20, 30 and 50 DMA…traded down from resistance in a sideways trading range. Stock Commentary BIDU pulled back from Wednesday’s bull flag support bounce POT formed a dark cloud cover in tis counter trend support bounce FWLT formed a dark cloud cover after its bounce at major support RIMM formed a potential bearish harami on a 5 cent pull back…stayed above its breakout and its 50 DMA BUCY formed a shooting star after its morning star pattern at support FSLR pulled back after Wednesday’s bullish engulfing pattern at support AGU formed a dark cloud cover after its morning star pattern following earnings AAPL formed a potential bearish harami and inside day after a two-day support bounce, bounced down from its 30 DMA and closing at its 20 DMA and just below its 200 DMA Thursday’s Action Moving Up: DECK, MTL, USO Moving Down: BIDU, GS, MA, SOHU, CLF, SINA, NIHD, DRYS, FSLR, CELG, LEH, MER, MOS, POT, BTU, MEE, MON, V, FWLT, FNM, AGU, ESRX, SCHN, PCLN, AMZN, IPI, GRMN, ANR, BAM, X, AAPL, FRE Intermediate Term Market Trend: Neutral Short Term Market Trend: Up