Indices Fall to Moving Average Support

DJIA - 245.40, -2.72% SP500 - 28.05, -3.00% NASDAQ Comp. - 53.32, -3.23% Russell 2000 - 17.61, -3.42% Exchange NYSE NASD Advancing 813 754 Declining 2,997 2,071 Oil $42.63 -$5.95 Gold $841.10 -$24.30 SOX 223.12 -11.44 VIX 43.39 +4.83 The VIX moved up confirming the move down in the SPX on Tuesday. Strongest Sectors: XLU -0.81%...XLV -0.91%...XLP -1.00% Weakest Sectors: XLF -5.22%...XLI -4.47%...XLE -4.24% Sector Watch Up Trending: Sideways: XLE, XLP, XLU, XLY, XLV, XLI, XLB, XLK, XLF Down Trending: Wednesday was a sell signal for many short-term traders as indices and many stocks broke below the low of the high day of the recent short-term up trend of the last five trading days. This type of price action can be either a sell signal for short-term bullish trades or an entry signal for short-term bearish trades. Oil moved lower as did commodity related stocks like coal and Ag-related. Gold stocks sold off as well. Since the broad indices and sectors are in intermediate term sideways trends a pull back from resistance is not unexpected after the last two days of small spinning tops. All nine sector ETFs moved lower today. If leading stocks stay above support and form a higher low in their recent up trend from the November lows, view this pull back as a potential entry opportunity for up trending stocks as they near support. Index Commentary The DJIA formed a large black candle closing below Tuesday’s (high day) low…closed above its 20, 30 and 50 DMA. The SPX formed a large black candle closing below Tuesday’s (high day)…confirmed Monday’s bearish harami…closed above its 20, 30 and 50 DMA.

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ProphetCharts

The Nasdaq gapped down from Tuesday’s (high day) low….confirmed Monday’s bearish harami…closed above its 20, 30 and 50 DMA. The RUT formed a large black candle closing below Tuesday’s (high day) low…closed above its 20, 30 and 50 DMA. Stocks to Watch on Thursday Leading Stocks: Holding Above 30 DMA AYE…PCLN…BAP…FLR…JCOM…JEC…PCR…ATK…RTN…SNA…WMS…HAS…JOSB…AMZN…BIIB…BYI…HDB…LFC…CERN…FWLT…MTW…QSII…VMI…OI…FLS…BCO…MOS…NDAQ…ROST…AET…POT…UTX…APH…CAM…CCC…CIR…CL…DECK…EPR…ESI…GES…GILD…JW.A…MYGN…ACL…DNA…HLF…OSIP…AGN…KEX…LAYN…RCI…NEU…RIO…SHW…AMED…PETS…SOHU…BCR…CAM…FLIR…NGS…NOV…SPN…CTSH…FSTR…IIVI…K…MCRS…NIHD…PCP…SWN…AMX…HP…ADBE…AME…ATW…GME…MBT…MON…NE…RIMM…AFAM…LNN…RIG… ICLR…SYNA Moving Above 30 DMA = 2 CBST…DLTR Moving Below 30 DMA = 12 AAPL…ANSS…BLUD…CHU…EZPW…MMM…NILE…PSSI…PSYS…VIP…VIVO…WAB Staying Below 30 DMA GIS…PTNR…AXYS…URBN…MTD…SINA…PRGO…PPD…ESRX…STRA… CHTT…DV…IRIS…ISRG…SPTN… CELG…ENDP…TECH…TEVA Wednesday’s Action Moving Up: MON, AFAM Moving Down: MA, CNX, FSLR, AEM, GS, SCHN, PCLN, KMT, BTU, X, MEE, FWLT, ANR, GDX, ZION, PNRA, NDAQ, AGU, KBE, CLF, CF, NUE, SOHU, ESRX, MS, KRE, V, LAMR, ONXX, BRC, RF, HANS, JASO, POT Intermediate Term Market Trend: Neutral – DJIA, SPX, Nasdaq, RUT Short Term Market Trend: Neutral