Markets Rally, Oil, Gold Hold Steady

DJIA + 289.78, +2.58% SP500 + 25.48, +2.05% NASDAQ Comp. + 13.88, +0.62% Russell 2000 + 14.01, +1.95% Exchange NYSE NASD Advancing 1,793 1,728 Declining 998 1,126 Oil $106.34 +$0.11 Gold $802.20 -$0.30 $SOX 330.84 -0.45 Strongest Sectors: XLY +4.52%...XLF +4.32%...XLU +2.51% Weakest Sectors: XLE -0.69%...XLB -0.19%...XLK +1.21% Sector Watch Up Trending: XLP, XLY Sideways: XLF, XLI, XLV Down Trending: XLE, XLU, XLB, XLK Stocks opened higher sold off immediately until about 2 pm ET and then rallied. The Dow and SPX. The Russell and Nasdaq closed near the middle of their trading range on Monday. The Naasdaq was the weakest of the broad indices with a 0.62% gain. The lack of participation by semiconductors and other technology stocks to the upside was the primary factor in the relative weakness of the Nasdaq today. Rumors allegedly caused by a misposting of a 6 year old Chicago Tribune article relating to United Airlines, drove the airline stocks significantly lower intra-day. UAUA was halted until the company responded. When the error was uncovered airline stocks rallied but still closed down for the day. Pay attention to key support and resistance levels. Trend are lasting only two to three days in the neutral market over the past few weeks. Index Commentary The DJIA rose above its 50, 30 and 20 DMA and above its 38.2% Fibonacci level on Monday...formed a morning star like pattern...and closed near R2 of Thursday's large black candle. The SPX closed at its 50 DMA and near its 38.2 Fibonacci level...is still below its 30 and 20 DMA...closed below its R2 level of Thursday's large black candle. The Nasdaq was the weakest broad index today... closed below the R1 level of Thursday's large black candle...well below its 50 DMA...just above its 61.8% Fibonacci retracement. The RUT continues to be the strongest of the broad indices...closed above its 30 DMA and just below it 23.6% Fibonacci retracement level...closed above its 200 DMA for the 21st day in a row. Stock Commentary Financial and retail stocks are among the strongest trending at this time. Financial stocks worth evaluating: XLF, BAC, JPM, C, WFC, MS, MER, NDAQ Retail stocks worth evaluating: XRT, ARO, SVU, FL, ROST, JCP, KSS, TGT, URBN Stocks for the down trend: X, SCHN, NUE, STLD, BTU, CNX, MEE, AEM, GDX Monday’s Action Moving Up: STRA, GS, IBM, COH, AMZN, MS, BIDU, LAMR, ESRX, NDAQ, DECK, MER, SINA, PNRA, KMT Moving Down: POT, ANR, MOS, FNM, CNX, X, MEE, AGU, FRE, AEM, BTU, FWLT, RIMM, AAPL, MA, NUE, GDX, MON, IPI, FMCN, LDK, HANS, PCLN, UAUA, SNDK, AMLN, ONXX, SCHN Intermediate Term Market Trend: Neutral Short Term Market Trend: Up