Indices Break Support Over Financial Concerns...Even As Oil Falls to Chart Target

DJIA - 504.48, -4.42% SP500 - 59.00, -4.71% NASDAQ Comp. - 81.36, -3.60% Russell 2000 - 30.50, -4.23% Exchange NYSE NASD Advancing 36 390 Declining 2,921 3,023 Oil $101.18 -$5.47 Gold $787.00 +$22.50 $SOX 311.76 -10.37 Strongest Sectors: XLP -1.20%...XLV -2.78%...XLY -3.37% Weakest Sectors: XLF -9.74%...XLE -7.66%...XLK -4.83% Sector Watch Up Trending: XLP, XLY Sideways: XLF, XLI, XLV Down Trending: XLE, XLU, XLB, XLK Irony is an amazing thing. For the first time in two and half years the airlines caused us to miss a connecting flight returning from a workshop in Canada, oil drops over $5, airline stocks rise and the market has its worst day in seven years. What was a simple flight with one short lay over turned into a fourteen hour marathon and four cities to arrive home long after the market had closed. Well it happened…concerns over LEH and MER brought aggressive sellers into the market all day long to drive the SPX to new lows and to send the DJIA and Nasdaq to their respective July 15 lows. We can’t remember the last time we only saw 36 advancers on the NYSE. That is an amazingly small number. DTP, LDG and DEE even managed to hit a 52-week high. It will be interesting to see if the market shakes this off like it did the March 17 fall in Bear Sterns or if this is the beginning of a new down leg in the market. Trading certainly will be intriguing on Tuesday and the balance of the week. We remember well the drop on October 19, 1987 when many thought it was the beginning of an even more sever drop when in fact it turned out to be the literal bottom in the market. You might recall our posting during the first week of August, that the oil chart suggested that oil would fall to 98.50. Today it dropped below its chart target from the first week of August. Today the concerns over financial companies out weighed falling oil prices and brought the broad market down to support. With oil dropping most of the airline stocks spent agood part of the day up only to go slightly negative in the last three hours of trading. UAUA and AMR did finish with nice percentage gains of more than 8% each. . Index Commentary The DJIA broke short-term support and fell to the area of its July 15 low.. The SPX fell and broke below its July 15 low. The Nasdaq like the DJIA fell to the area of its July 15 low. The RUT broke through the support of its 200 and 50 DMA. Monday’s Action Moving Up: PNRA, UAUA, AMLN Moving Down: ANR, X, MA, GS, CF, FSLR, BIDU, CLF, DRYS, POT, MOS, MEE, CNX, MON, BTU, SCHN, AGU, NUE, IPI, AAPL, PCLN, RSHOHU, BUCY, LEH, JASO, V, EXPE, IMM MS, FWLT, NIHD, IBM, STRA, LDK, GRMN, AEM, GDX, CELG, KMT, DECK, LAMR, SNDK, ESRX, COH, ONXX, AMZN, BRCM, FMCN, HANS Intermediate Term Market Trend: Down Short Term Market Trend: Down