Dow Continues Pullback to Support

DJIA - 223.73, -2.63% SP500 - 22.54, -2.58% NASDAQ Comp. - 34.80, -2.29% Russell 2000 - 5.22, -1.14% Exchange NYSE NASD Advancing 899 933 Declining 2,769 1,935 Oil $54.95 -$2.09 Gold $742.00 -$0.50 SOX 195.72 -5.67 VIX 69.15 +2.84 Strongest Sectors: XLU -0.17%...XLP -1.32%...XLV -1.72% Weakest Sectors: XLF -6.36%...XLY -2.87%...XLK -2.84% Sector Watch Up Trending: Sideways: Down Trending: XLP, XLF, XLY, XLV, XLI, XLE, XLU, XLB, XLK Stocks moved down towards the horizontal support level from which they rose just last Thursday. Oil moved lower on the day forming a new 52-week. The Financial Sector was the weakest sector on Monday as C announced 50,000 job cuts. Watch closely on Tuesday as indexes trade near support. Watch for a support bounce or break. Traders should maintain mental flexibility and trade with the higher probability of a trading range (sideways trend – bullish at support and bearish at resistance) while at the same time being prepared to trade bearish if support breaks. Index Commentary The DJIA formed lower high and lower low …pulled back to Thursday’s S2 support level. The SPX formed a lower high and lower low…closed at the S2 level of Thursday’s large white candle…closed above Thursday’s low. The Nasdaq formed an inverted hammer…a lower high and higher low…a new closing low…closed above Thursday’s intraday low. The RUT formed a lower high and higher low…while trading above Thursday’s intraday low…still forming potential double or triple bottom. Stocks to Watch on Tuesday Potential Bull Flag GILD Potential Trend Reversal RIMM Leading Stocks Holding Above 30 DMA Breaking Below Support WYNN TEVA…ESRX…GIS…MMM…PRGO…VIVO Stocks Moving Above 30 DMA AYE…FLIR…JCOM…LFL…PSSI Moving Below 30 DMA ANSS…BLUD…CELG…DNA…EZPW…PRGO…RCI…RTN…SHW Stock Commentary CELG lower high…lower low…lower close pullback ESRX lower high…lower low…lower close…holding support GE bullish harami…no confirmation of Friday’s inverted hammer or Thursday’s hammer MMM lower high…lower low…holding at 30 DMA UTX lower high…lower low…lower close Monday’s Action Moving Up: STRA, PCLN Moving Down: BIDU, MA, GS, CF, DECK, AEM, IPI, ZION, SOHU, BUCY, AMZN, LAMR, V, MER, FSLR, AGU, ANR, X, SCHN, NDAQ, KBE, BTU, MOS, GDX, NUE, SINA, MS, CNX, GRMN, ONXX, KMT Intermediate Term Market Trend: Neutral – 5 weeks Short Term Market Trend: Down