SPX, Nasdaq and RUT Break Support

DJIA - 427.47, -5.07% SP500 - 52.54, -6.12% NASDAQ Comp. - 96.85, -6.53% Russell 2000 - 35.13, -7.85% Exchange NYSE NASD Advancing 303 336 Declining 3,390 2,568 Oil $53.62 -$0.77 Gold $736.00 +$3.30 SOX 177.10 -14.79 VIX 74.26 +6.62 Strongest Sectors: XLU -2.14%...XLP -2.57%...XLV -4.04% Weakest Sectors: XLF -10.47%...XLI -6.46%...XLY -6.42% Sector Watch Up Trending: Sideways: Down Trending: XLP, XLF, XLY, XLV, XLI, XLE, XLU, XLB, XLK Wednesday was a good old fashioned down day with all broad indices, sectors and most stocks moving lower. Decliners led advancers by a 9 to 1 margin. Concerns over the auto industry played a major role in the tone for the day. The price of GM and F indicates the market is not expecting much for these companies, but the real concern is the economic impact and the potential for more lost jobs should government help not be forth coming. Oil moved fell another 77 cents hitting a new 22 month low. Gold rose $3.30. The SPX, Nasdaq and RUT made new closing lows and can be considered to have broken support today. The SPX is 4% below its Oct. 10 low. The Nasdaq is 7% below its Oct. 24 low. The RUT is 6.6% below its Oct. 28 low. Only the DJIA closed above its Oct. 10 low today. Index Commentary The DJIA formed a large black candle…new 52 week closing low…holds above Oct. 10 intraday support low. The SPX large black candle breaks support…new 52-week intraday and closing low. The Nasdaq large black candle breaks support…new 52-week intraday and closing low. The RUT large black candle breaks support…new 52-week intraday and closing low. Trend Reversal Strategy RIMM stop was moved to $44.70 this morning. RIMM fell to 45.33 and did not stop out. Stocks to Watch on Thursday Potential Support Bounce or Break GILD…at support with a potential 5 point target JNJ…at support with a potential 4 point target IBM…at support with a potential 9 point target PCP…at support with a potential 6 point target BCR…at support with a potential 7 point target CELG…at support with a potential 6 point target Broke Support BA Leading Stocks Holding Above 30 DMA TEVA…VIVO Stocks Moving Below 30 DMA ANSS…AOB…AYE…CBST…CERN…CHTT…ESI…FLIR…FSTR…GILD…GIS…MMM…PCLN…PRGO…PSSI…SHW…SWN Stock Commentary CELG lower high…lower low…lower close at support ESRX large black candle…break support…target 49 GE large black candle…new 52-week low MMM large black candle…near support in sideways move…watch for bounce or break UTX large black candle no confirmation of Tuesday’s piercing line pattern HPQ shooting star after Tuesday’s gap up Wednesday’s Action Moving Up: None in our Watchlist Moving Down: BIDU, MA, FSLR, GS, POT, CF, SOHU, AEM, MON, ESRX, X, BTU, SCHN, V, DRYS, AMZN, BUCY, CLF, NUE, AGU, MOS, MEE, SINA, CNX, NDAQ, PNRA, UAUA, KBE, KRE, ZION, LCC, HANS, MS, PCLN, ANR, FWLT, GRMN, IPI, LDK, MER, DECK, INFY, KMT, ONXX, COH, LAMR, FMCN, GDX, RF Intermediate Term Market Trend: Down SPX, Nasdaq, RUT Short Term Market Trend: Down