Stocks Break Recent Lows

DJIA - 248.42, -2.94% SP500 - 2917, -3.35% NASDAQ Comp. - 56.82, -3.67% Russell 2000 - 20.62, -4.35% Exchange NYSE NASD Advancing 486 513 Declining 3,330 2,287 Oil $37.28 -$0.50 Gold $808.20 -$11.90 SOX 202.01 -8.78 VIX 49.14 +5.87 The VIX moved up confirming the move down in the SPX on Wednesday. Strongest Sectors: XLU -1.23%...XLV-1.42%...XLP -2.20% Weakest Sectors: XLF -5.77%...XLE -4.78%...XLY -3.91% Sector Watch Up Trending: Sideways: XLE, XLP, XLU, XLY, XLV, XLI, XLB, XLK, XLF Down Trending: The broad indices broke below the Dec 29 horizontal support level and moved lower after a weaker -2.7% than forecast -1.2% retail sales report for December. News about Steve Jobs taking a leave of absence for health reasons drove down another 7% in after-hours trading after falling almost 3% during regular trading hours. Decliners led advancers by more than 6 to 1 on the NYSE and more than 4 to 1 on the Nasdaq. All nine sector ETFs closed lower on Wednesday. Selling drove prices below Tuesday’s low making Wednesday the new low day in the current move down from resistance. Downward momentum accelerated after Tuesday’s slowdown in downward momentum. Earnings On Wednesday SHFL reported +0.12 better than expected +0.08 earnings. XLNX reported +0.32 in line earnings. Thursday earnings: JPM, DNA, INTC Friday earnings: C, JCI Earnings reports increase significantly next week. Index Commentary The DJIA formed a large black candle breaking below its Dec 29 low and falling to its Dec 5 horizontal support area…closed below its 20, 30 and 50 DMA. The SPX formed a large black candle falling below its Dec 12 horizontal support…closed at it Oct 10 horizontal support low…next horizontal support Dec 1 low of 815…closed below its 20, 30 and 50 DMA. The Nasdaq formed a large black candle falling to its Dec 12, Dec 29 horizontal support low …moved and closed above its 30 DMA…next horizontal support from Dec 5 at 1,400 area…closed below its 20, 30 and 50 DMA. The RUT form a large black candle breaking below its Oct 10 and Dec 29 lows…next horizontal support from Oct 29 and Dec 12 at 440…closed below its 20, 30 and 50 DMA. Stocks to Watch on Thursday Check out the support bounce with volume increase on AGN and RTN Leading Stocks: Holding Above 30 DMA PCLN…BAP…JOSB…BIIB…QSII…BCO…ROST…AET…POT…ESI…GES…JW.A…MYGN…DNA…HLF…OSIP…AGN…WCG…LAYN…AMED…BCR…CAM…FLIR…NGS…CTSH…HP…GME…MON…RIMM…ICLR…SYNA…BLUD…CERN Moving Above 30 DMA = 2 RTN…TEVA Moving Below 30 DMA = 30 ACL…AMZN…ATW…AYE…BYI…CCC…CIR…CL…FLS…FWLT…GILD…HDB…IIVI…JEC…K…KEX…LNN…MOS…MTD…NIHD…NOV…OI…PCR…RIG…RIO…SHW…SPN…SWN…UTX…VAR Staying Below 30 DMA GIS…PTNR…AXYS…URBN…SINA…PRGO…PPD…ESRX…CHTT…IRIS…ISRG…SPTN…CELG…ENDP…TECH…ANSS…CHU…EZPW…NILE…PSSI…PSYS…VIVO…WAB…JCOM…MCRS…NDAQ…AAPL…AFAM…AME…DLTR…EPR…FSTR…HAS…LFC…MMM…MTW…NE…NEU…RCI…SOHU…VIP…AMX…CBST…DECK…DV…FLR…MBT…SNA…VMI…WMS…ADBE…APH…ATK…PCP…PETS…STRA Wednesday’s Action Moving Up: None (for the second time this week) Moving Down: FSLR, POT, STRA, MA, CLF, SCHN, ADM, PNRA, CF, CNX, NUE, V, MON, X, BTU, FWLT, GS, AGU, AEM, PCLN, GDX, HANS, MS, SOHU, ONXX, LAMR, KRE, NIHD, EBAY, COH, KMT, IPI, MOS, ANR, NDAQ, GRMN, KBE, MEE, INFY, ZION, LCC, ESRX, UAUA, AFAM Intermediate Term Market Trend: Neutral – DJIA, SPX, Nasdaq, RUT Short Term Market Trend: Down