Stock Indexes Approach Support

DJIA - 411.30, -4.73% SP500 - 46.65, -5.19% NASDAQ Comp. - 81.69, -5.17% Russell 2000 - 29.49, -6.11% Exchange NYSE NASD Advancing 323 412 Declining 3,250 2,504 Oil $56.16 -$3.17 Gold $718.30 -$14.50 SOX 200.79 -10.64 VIX 66.46 +5.02 Strongest Sectors: XLP -2.14%...XLV -2.21%...XLU -3.32% Weakest Sectors: XLE -8.19%...XLB -6.36%...XLF -6.16% Sector Watch Up Trending: Sideways: Down Trending: XLP, XLF, XLY, XLV, XLI, XLE, XLU, XLB, XLK Stocks, oil and gold moved lower on Wednesday near the area of support established since October 10. If the DJIA 7,882 to 8,143 support area is good big money should step in and begin to buy in that area as they did on Oct. 10, 16, 22, 23, 24, 27 and 28. Watch this major support area on Thursday and Friday for a potential bounce or break. This is an important retest of the October lows. If traders have been trading the short-term trend correctly they are already in short-term bearish trades and could be looking to lock in profits if support holds. If support breaks they could hold existing bearish trades or enter new bearish trades as stocks break support. Even though oil moved lower airline stocks which have been relatively stronger moved lower on concerns for falling demand in air travel related to the current economic slowdown. Index Commentary The DJIA broke below the Oct. 28 S1 support and fell near the S2 level forming a large black candle…approaching major support area. The SPX also broke the Oct. 28 S1 support…nearing 839 Oct. 10 low. The Nasdaq fell to within 6 point of its Oct. 24 low at 1,493…forming a large black candle. The RUT formed a large black candle falling within 11 point of its Oct. 28 low…a lower low would negate the potential head and shoulders bottom. Stocks to Watch on Thursday Leading Stocks Holding Above 30 DMA EZPW…TEVA Stocks Falling Below 30 DMA ANSS…BCR…BIIB…BLUD…ESRX…LFL…OSIP…PRGO…QSII…RTN…SAY…TECH…UTX Monday’s At Resistance Stocks Again Moved Lower on Wednesday CLI -6.66%…AVP -9.34%…DB -10.93%…CRDN -3.41%…SPG -10.98%…DRIV -6.18% Wednesday’s Action Moving Up: None in our Watchlist Moving Down: FSLR, POT, BIDU, GS, STRA, CF, DECK, MON, MA, X, ZION, AMZN, LDK, BUCY, SOHU, CLF, V, INFY, UAUA, NDAQ, PNRA, ESRX, LCC, KRE, KBE, MOS, PCLN, IPI, BTU, NUE, AGU, CNX, AEM, MEE, SCHN, GDX, FWLT, MS, ANR, MER, KMT, NIHD, ONXX, DRYS, GRMN, SINA, JASO, BRCM, COH, FMCN, LAMR, EBAY Intermediate Term Market Trend: Neutral – 4 weeks Short Term Market Trend: Down