Markets Breaking Friday's Low

As I stated in Friday's post, the indices were looking weak. Monday morning they are behaving weak! All four indices are down during the first couple of hours and all four have broken Friday's low. The Nasdaq and Russell have broken the low of the high day and are moving back below their 200 DMA. Both are above their 20, 30 and 50 DMA. Both are potential double top M patterns with bearish divergences in the 2-line MACD and the MACD histogram. The S&P is also breaking the low of the high day on a lower high or bear flag chart pattern. The S&P is below its 20, 30 and 200 DMA. It is at the moment above its 50 DMA but moving near the 50 DMA. Watch for a potential break of the 50 DMA and the horizontal support established on 5/23 and 5/27. The DJIA is breaking the low of the high day and it own bear flag pattern. It is trading below its 20, 30, 50, and 200 DMA. It is at the horizontal support zone established on 5/23 and 5/27. Watch for a potential break. What I saw in the charts on Friday is happening on Monday. Energy related and basic material stocks are moving higher. Consumer and Technology stocks are moving lower. Monday's Early Action Moving Up: CNX, MEE, CF, POT, BTU, CLF, MOS, X, MON, ANR, FWLT, AGU, USO, MA, SCHN and NUE Moving Down: FSLR, DECK, PCLN, GS, IBM, AAPC, RIMM, NKE, BIDU, MTL, LEH, STRA, AMZN, MER, MS, EXPE, BRCM, EBAY I'll be on vacation this week so look for my post on Friday!