Markets Still Waiting...

DJIA - 29.00, -0.27% SP500 - 2.35, -0.20% NASDAQ Comp. + 2.35,+0.11% Russell 2000 - 11.42, -1.61% Exchange NYSE NASD Advancing 1,239 1,063 Declining 1,820 1,804 Oil $105.73 -$0.88 Gold $895.00 +$3.80 $SOX 315.94 +3.27 Strongest Sectors: XLV +0.93%...XLU +0.92%...XLE +0.30% Weakest Sectors: XLB -1.98%...XLF -1.12%...XLY -0.35% Sector Watch Up Trending: Sideways: XLK, XLI, XLV, XLP, XLY Down Trending: XLE, XLU, XLB, XLK

The market traded in a narrow range as it seemed to be waiting on word from Washington on the financial bailout. Decliners still led advancers although there were more advancing stocks on Wednesday that on Monday and Tuesday. Oil moved lower on a report that demand for gasoline over the past four weeks was down 3.5% from a year ago. Small cap stocks were down more than 1.5% as buying was weaker in this market segment. Many of the financial stocks we mentioned in Tuesday’s post were near unchanged. Decliners: CB, BBT, STI, ZION, RF, PACW, KBE Advancers: KRE HANS dropped below its breakout point in early trading on Wednesday, creating what turned out to be a buying opportunity. News reports attribute the temporary drop in price to the Company not mentioning the distribution agreement discussions with Coca-Cola. HANS rallied from its early Wednesday drop and closed back above its breakout level. HANS was down 44 cents on Wednesday. Check your news for more details.

Index Commentary The DJIA formed a spinning top in the area of the S1 support of Thursday’s candle…continue to watch this support level and the R1 resistance of Monday’s candle. The SPX also formed a spinning top in the area of its S1 level of Thursday’s candle…watch S1 support and the R1 resistance of Monday’s candle. The Nasdaq formed a bullish harami while staying above the mid-section of Thursday’s white candle or the S2 level…continue to watch this support and the R1 of Monday’s large black candle. The SOX formed a bullish harami while staying above last Tuesday’s low…continue to watch to see if this index forms a double bottom or breaks below it 305 support level.

The RUT was the weakest index today and fell to the S1 level of last Thursday’s large white candle…still in a sideways trend…continue to watch the S1 support level and the resistance areas of the 20, 30, 50 and 200 DMA as well as the R1 resistance of Monday’s candle.

Wednesday’s Action Moving Up: FSLR, GS, BIDU, SOHU, ESRX, FMCN, AAPL, LDK, NIHD, IBM, BRCM, AEM, POT, GRMN, CF, CELG, AMLN, FRE, FNM, Moving Down: STRA, DECK, MS, ANR, CLF, MA, X, BUCY, CNX, FWLT, AMZN, NDAQ, LAMR, INFY, UAUA, PNRA, MOS, SCHN, BTU, MTL KMT, COH, V, DRYS, AGU, ONXX, LCC, PCLN Intermediate Term Market Trend: Neutral Short Term Market Trend: Neutral