Stocks Short Term Drop Continues

DJIA - 125.21, -1.46% SP500 - 20.09, -2.26% NASDAQ Comp. - 32.80, -2.09% Russell 2000 - 12.50, -2.60% Exchange NYSE NASD Advancing 899 684 Declining 2,880 2,121 Oil $37.59 -$3.24 Gold $820.30 -$34.00 SOX 209.09 -6.19 VIX 45.84 +3.02 The VIX confirmed the move down in the SPX on Monday. Friday’s VIX small rise did not indicate a Friday or Monday bottom. Strongest Sectors: XLU +0.04%...XLU +0.03%...XLV -1.30% Weakest Sectors: XLF -5.28%...XLB -4.16%...XLE -3.95% Sector Watch Up Trending: Sideways: XLE, XLP, XLU, XLY, XLV, XLI, XLB, XLK, XLF Down Trending: The broad market indices continued their move towards horizontal support. Oil followed through on its bear flag and can potentially form a double bottom or W bottom. Gold fell forming a potential bull flag. As markets near support watch for a potential support bounce. Many of the leading stocks in our Stocks to Watch list are forming bull flag patterns. Index Commentary The DJIA formed a black candle as the index neared its Dec 29 low…closed below its 20, 30 and 50 DMA. The SPX formed a black candle as it moved below its 30 and 50 DMA and near its Dec 29 low… closed below its 20, 30 and 50 DMA. The Nasdaq formed a black candle as it moved below its 20, 30 and 50 DMA and 45 points above its Dec 29 horizontal support…closed below its 20, 30 and 50 DMA. Stocks to Watch on Tuesday Leading Stocks: Holding Above 30 DMA AYE…PCLN…BAP…PCR…ATK…RTN…JOSB…AMZN…BIIB…BYI…QSII…OI…FLS…BCO…MOS…ROST…AET…POT…UTX…APH…CAM…CCC…CIR…CL…ESI…GES…JW.A…MYGN…ACL…DNA…HLF…OSIP…AGN…KEX…LAYN…RIO…SHW…AMED…PETS…BCR…CAM…FLIR…NGS…NOV…SPN…CTSH…K…NIHD…PCP…HP…ADBE…ATW…GME…MON…RIMM…ICLR…SYNA…BLUD…STRA…TEVA Moving Above 30 DMA = 1 CERN Moving Below 30 DMA = 17 AMX…CBST…DECK…DV…FLR…FWLT…GILD…HDB…IIVI…JEC…LNN…MBT…RIG…SNA…SWN…VMI…WMS Staying Below 30 DMA GIS…PTNR…AXYS…URBN…MTD…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 Monday’s Action Moving Up: None Moving Down: FSLR, POT, GS, CF, X, MOS, AEM, PCLN, SOHU, NIHD, MON, AGU, SCHN, NUE, CNX, V, CLF, GDX, IPI, ANR, BTU, FWLT, GRMN, STRA, DRYS, ADM, MEE, KBE, KMT, SINA, ZION, KRE, COH, NDAQ, HANS Intermediate Term Market Trend: Neutral – DJIA, SPX, Nasdaq, RUT Short Term Market Trend: Down