Stocks Fall as Oil, Gold Rise

DJIA - 109.51, -0.94% SP500 - 3.76, -0.29% NASDAQ Comp. - 1.99, -0.08% Russell 2000 + 2.75, +0.37% Exchange NYSE NASD Advancing 1,350 1,533 Declining 1,773 1,345 Oil $116.00 +$2.99 Gold $831.50 +$16.90 $SOX 373.09 -2.19 Strongest Sectors: XLE +3.54...XLB +2.16%...XLV +0.06% Weakest Sectors: XLF -2.88%...XLY -1.62%...XLP -1.00% Sectors and stocks that have been weak over the past four weeks were strong today including oil, gold, basic materials like steel, coal, mining and ag-related stocks. Oil and gold prices rose while financial stocks fell.

The DJIA was the weakest of the four broad indices and the RUT was the strongest on Wednesday. The DJIA was pulled lower by weakness in CAT, BA, AXP, MCD and JPM.

XLF and XLY were the weakest sectors for the second day in a row. Looking to Thursday, the Labor Department will report its monthy Consumer Price Index and Wal-Mart (WMT) and Nordstrom (JWN) will report earnings. Sector Watch Up Trending: XLI, XLK, XLP, XLV, XLY Sideways: XLB, XLF, Down Trending: XLE, XLU, Index Commentary The DJIA fell below its 50 DMA and bounced up from its 20 DMA…closed near Friday’s S1 level…forming a bull flag...look for a break of the flag or above the high of the low day, today. The SPX formed a hammer after a two day pull back…stayed below its 50 DMA and bounced up from its 20 DMA today…in a bull flag…look for a move above the high of the low day. The Nasdaq has paused for three days at its 200 DMA…pulled back to Monday’s S3 level before rallying to form a white spinning top…appears to be in a pennant pattern…look for a break out of the pennant. The SOX pulled back after six straight days up…spinning top…horizontal bull flag between its 50 and 200 DMA. The RUT was the strongest of the broad indices today…has paused for two days in the 750 area which is the horizontal resistance area from late May and early June…the RUT is holding above Monday’s S1 level…has now closed four consecutive days and five of the last six above its 200 DMA...appears to be in a horizontal bull flag...look for a break above today's high. Stock Commentary Up Trending RIMM formed a spinning top in a 3-day bull flag at its 50 DMA…look for break of the flag or high of the low day AAPL formed potential hanging man at 180 resistance AMZN spinning top that confirmed Tuesday’s bearish harami and is still well above Monday’s S1 level…a modest pullback consider it large move up on Monday…appears to be forming a bull flag NIHD bull flag bounce broke high of the low day…return move to 52.50 break out level…chart target 63 ESRX at long term resistance of 74 area…hanging man…bounced up from Friday’s S1 level UAUA forming bull flag on today’s pull back as oil rises QCOM formed a bullish engulfing pattern in a horizontal earnings bull flag Down Trending POT counter trend support bounce off 200 DMA…confirmation of piercing line pattern…potential bear flag MOS counter trend support bounce reversal at 200 DMA…bear flag AGU counter trend support bounce off 200 DMA…confirmation of piercing line pattern… potential bear flag X counter trend support bounce off 200 DMA…confirmation of bullish harami…potential bear flag FWLT large bullish harami inside day at long term sideways trend support CNX counter trend support bounce…confirmation of bullish harami…potential bear flag BTU counter trend support bounce…confirmation inside day…potential bear flag Sideways Trending CF support bounce reversal off 200 DMA and confirmation of inside day FSLR support bounce confirmation of bullish harami CLF horizontal support bounce…confirmation of bullish harami Tuesday’s Action Moving Up: CF, POT, MOS, FSLR, X, CLF, DRYS, MON, AGU, CNX, BTU, MEE, IPI, BUCY, BIDU, FWLT, MTL, ANR, NUE, MA AAPL, NUE, MA, AAPL, USO, DECK, SCHN, NIHD, V, MER Moving Down: GS, MS, RIMM, UAUA, GRNM, ESRX Intermediate Term Market Trend: Up Short Term Market Trend: Down