Markets Pause...Close Moderately Lower

DJIA - 19.59, -0.18% SP500 - 3.68, -0.32% NASDAQ Comp. - 12.93, -0.62% Russell 2000 - 7.99, -1.18% Exchange NYSE NASD Advancing 1,706 1,063 Declining 1,742 1,819 Oil $98.53 -$2.11 Gold $887.30 +$6.50 $SOX 303.23 -3.66 Strongest Sectors: XLF +3.92%...XLP +0.72...XLV +0.67% Weakest Sectors: XLI -2.37%...XLB -1.65%...XLE -1.64% Sector Watch Up Trending: Sideways: XLF, XLV, XLP, XLY Down Trending: XLI, XLE, XLU, XLB, XLK The Financial Sector, XLF, was the strongest sector for the second day in a row. The SEC extended the ban on the short sale of more than 800 financial stocks. The ban was set to end on October 2, is extended until three business days after enactment of the $700 billion financial resuce bill, but not later than October 17. The Senate approved the $700 billion financial rescue plan Wednesday evening. The bill now goes to the House which is expected to vote on the bill on Friday.

Gold and Oil traded places again from Tuesday to Wednesday. Gold was up on was up on Wednesday and Oil was down. The Airline group responded with gains from 5% to 16%. Check the charts of LCC, DAL, AMR, UAUA and CAL. HANS formed a higher high and higher low and closed above its 30 horizontal breakout area. KRE closed above the high of the low day and formed a higher high and higher low in its bull flag pattern. This would be an entry signal for some traders. NTRI formed an inside day and spinning top in its bull flag pattern. Watch for a support bounce in this flag patten.

Index Commentary The DJIA failed to confirm Tuesday’s bullish harami but did form a hammer candle that stayed above Tuesday’s S1 support level…watch for potential confirmation of the bullish harami and hammer on Thursday. The SPX also failed to confirm Tuesday’s bullish harami and did form a hammer that closed above Tuesday’s S1 support…watch for potential candle confirmation on Thursday. The Nasdaq formed a hammer on Wednesday that failed to confirm Tuesday’s bullish harami…watch for potential confirmation of the bullish harami and hammer on Thursday. The SOX failed to confirm Tuesday's bullish harami. The RUT also failed to confirm Tuesday's bullish harami and formed an inside day.

Wednesday’s Action Moving Up: FSLR, GS, ZION, LDK, KBE, NDAQ, DRE, PNRA, STRA, MS, MER, JASO, LCC, HANS, RF, UAUA, AEM, Moving Down: X, MA, CLF, CNX, POT, BTU, ANR, PCLN, BIDU, BUCY, FWLT, AMZN, CF, NIHD, EBAY, DECK, COH, MEE, SCHN, AGU, MON, SINA, GRMN, FMCN, INFY, LAMR, NUE Intermediate Term Market Trend: Down Short Term Market Trend: Down