Financial Stocks Pull Market Lower

DJIA - 332.13, -4.01% SP500 - 44.90, -5.28% NASDAQ Comp. - 88.47, -5.78% Russell 2000 - 32.80, -7.03% Exchange NYSE NASD Advancing 442 407 Declining 3,369 2,400 Oil $40.84 -$1.73 Mar 09 contract Gold $854.60 +$15.30 SOX 199.07 -15.35 VIX 56.65 +10.54 The VIX moved up confirming the move down in the SPX on Tuesday. Strongest Sectors: XLP -1.18%...XLU -1.73%...XLV -2.42% Weakest Sectors: XLF -16.53%...XLY -5.87%...XLB -5.63% Sector Watch Up Trending: Sideways: XLE, XLP, XLU, XLY, XLV, XLI, XLB, XLK Down Trending: XLF Indices fell from the open starting with disappointing news from STT. See our early Tuesday post. The Financial Sector ETF, XLF, fell -16.53%. Indices fell below Thursday's low creating a failed support bounce. IBM shares rose in after-market trading after earnings beat estimates. Dave was traveling Tuesday to teach an AT Workshop. Earnings Tuesday, Jan 20: FAST +0.43 beat +0.41 estimates JNJ +0.94 beat +0.92 est. LOGI -0.22 below +0.43 est. PETS +0.21 beat +0.20 est., PCP +1.74 beat 1.70 est., AMTD +0.31 in line +0.31, BK +0.92 beat +0.69 est., CREE +0.12 beat +0.09 est., IBM +3.28 beat +3.03 est. Wed: BMO – ABT, ATI, AMR, COH, DAL, FCX, IIVI, PJC, UAUA, UTX, USB AMC – AAPL, EBAY, FFIV, NE, SLM, TER Thur: BK, BAX, CIT, CY, F, IGT, ESI, KEY, NITE, KLIC, LMT, POT, SHW, LUV, STI, UNP, UNH, LCC AMC – AMD, COF, CBST, EZPW, GOOG, IBKR, ISRG, MSFT, SYNA, Fri: GE, HOG, MBFI, SLB, XRX Index Commentary The DJIA formed a large black candle and broke Thursday’s support…support bounce failed…closed below its 20, 30 and 50 DMA. The SPX formed a large black candle and broke Thursday’s suppor… support bounce failed…closed below its 20, 30 and 50 DMA. The Nasdaq formed a large black candle and broke Thursday’s support…support bounce failure…closed below its 20, 30 and 50 DMA. The RUT formed a large black candle and broke Thursday’s support…closed below its 20, 30 and 50 DMA. Stocks to Watch on Wednesday Leading Stocks: Holding Above 30 DMA JOSB…BIIB…BCO…ROST…ESI…JW.A…MYGN…DNA…AGN…AMED…BCR…CTSH…MON…RIMM…ICLR…SYNA…BLUD…CERN…RTN…AME…APH…DLTR…DV…STRA…AYE…GIS…K Moving Above 30 DMA = 1 PCP Moving Below 30 DMA = 30 AET…ATK…CAM…CCC…CIR…FLIR…GES…GME…HLF…HP…JEC…KEX…LAYN…MOS…MTD…NIHD…OSIP…PCLN…PCR…PETS…POT…QSII…RIO…SHW…SPN…TECH…TEVA…URBN…UTX…VAR Staying Below 30 DMA GIS…PTNR…AXYS…SINA…PRGO…PPD…ESRX…CHTT…IRIS…ISRG…SPTN…ENDP…ANSS…CHU…EZPW…NILE…PSSI…PSYS…VIVO…WAB…JCOM…MCRS…NDAQ…AAPL…AFAM…EPR…FSTR…HAS…LFC…MMM…MTW…NE…NEU…RCI…SOHU…VIP…AMX…CBST…DECK…FLR…MBT…SNA…VMI…WMS…ADBE…ACL…AMZN…ATW…BYI…CL…FLS…FWLT…GILD…HDB…LNN…NOV…OI…RIG…SWN…BAP…NGS…WCG…IIVI Tuesday’s Action Moving Up: None Moving Down: GS, MA, FSLR, PCLN, V, POT, MON, ZION, MOS, KBE, AGU, SCHN, X, NDAQ, FWLT, ANR, PNRA, CF, ESRX, MS, KRE, SOHU, NUE, STRA, AEM, DRYS, CNX, INFY, SINA, RF, KMT, LAMR, BRCM, NIHD, CLF, COH, BTU, MEE, GRMN, IPI, ONXX, LCC, HANS, EBAY Intermediate Term Market Trend: Neutral – DJIA, SPX, Nasdaq, RUT Short Term Market Trend: Down