Stocks Rise As Oil Falls

DJIA + 82.97, +0.72% SP500 + 7.10, +0.55% NASDAQ Comp. + 25.05, +1.03% Russell 2000 + 6.69, +0.89% Exchange NYSE NASD Advancing 1,981 1,762 Declining 1,096 1,131 Oil $115.01 -$0.99 Gold $814.50 -$17.00 $SOX 377.09 +4.00 Strongest Sectors: XLF +3.11%...XLY +1.51%...XLK +0.77% Weakest Sectors: XLE -1.84%...XLU -0.86%...XLB -0.20% Sector Watch Up Trending: XLI, XLK, XLP, XLV, XLY Sideways: XLB, XLF Down Trending: XLE, XLU The broad indices rallied after a disappointing CPI report for July, showing that trend is more significant than this economic report. Oil and gold fell again resuming their intermediate down trend. Oil, coal, gold, basic materials, steel and ag-related stocks that had a counter-trend rally on Wednesday moved lower in their intermediate term down trend. XLI, XLK, XLY XLP and XLV all had bull flag support bounce type moves on Thursday. Short Term Market Trend changed to Neutral one bay bounce following two day pullback. Index Commentary The DJIA formed a bullish harami outside day at its 20 DMA in bull flag...closed at 50 DMA. The SPX formed a bullish engulfing bull flag bounce...closed above 50 DMA. The Nasdaq formed a bullish engulfing bull flag bounce...closed above its 200 DMA...a new high close on Thursday.

The SOX formed a bullish engulfing pattern in a horizontal bull flag just below its 200 DMA.

The RUT broke the high of the low day in two-day bull flag...closed above 200 DMA for fifth straight day...approaching 765 horizontal resistance. Stock Commentary Up Trending RIMM classic support bounce bull flag bounce entry point AAPL spinning top 180 resistance area AMZN bullish engulfing after two day pullback above Monday’s S1 level… a bull flag bounce NIHD support bounce off 20 DMA…chart target 63 ESRX at long term horizontal resistance of 73 - 74 area…watch for breakout or bounce down UAUA slight bounce in bull flag as oil falls NDAQ bull flag bounce…morning star pattern WRC bull flag bounce bounce ONXX horizontal breakout…chart target 50 HANS bull flag support bounce and breakout AMLN horizontal resistance breakout…chart target 42 Down Trending POT, MOS, X, FWLT, CNX all formed a bearish harami Thursday after a counter trend support bounce Wednesday…watch for a break below support in these potential bear flags AGU formed a reversal spinning top in its counter trend support bounce… watch for a move below Thursday’s low in this potential bear flag BTU formed a hanging man pattern in its counter trend support bounce…watch for a break below Thursday’s low in this potential bear flag

Sideways Trending CF formed a bearish harami FSLR formed a white spinning top CLF formed white candle after Wednesday’s horizontal support bounce

Thursday’s Action Moving Up: BIDU, DRYS, RIMM, CLF, MA, V, DECK, GS, SOHU, AMZN, CELG, IBM, PCLN, ANR, NIHD, SINA, ESRX, LEH, UAUA, FNM, BRCM Also Moving Up: HANS, SNDK, NVDA, LAMR, FMCN, AMLN, INFY, UAUA, DRYS, ONXX, GET, EXM, NDAQ, LDK, WRC, COH, KMT, PNRA Moving Down: IPI, X, MON, MOS, FWLT, NUE, CF, CNX, AGU, USO Intermediate Term Market Trend: Up Short Term Market Trend: Neutral