Broad Indices Move Lower on Friday...

DJIA - 119.15, -1.66% SP500 - 17.74, -2.35% NASDAQ Comp. - 13.63, -0.98% Russell 2000 - 3.93, -1.00% Exchange NYSE NASD Advancing 1,232 1,123 Declining 2,525 1,648 Oil $44.76 -$0.46 Gold $941.50 -$0.30 SOX 199.00 -2.47 VIX 46.35 +1.69 The VIX moved up confirming the move down in the SPX on Friday. Strongest Sectors: XLP -0.62%...XLY -0.68%...XLK -0.70% Weakest Sectors: XLF -6.52%...XLV -4.01%...XLI -2.51% Sector Watch Up Trending: Sideways: XLE, XLU, XLY, XLV, XLB, XLK Down Trending: XLF, XLP, XLI While we were out of the country the broad indices had a strong support bounce on Tuesday and then managed to give it back in pieces Wednesday through Friday. The Financial Sector, XLF, -6.52%, once again was the weakest sector ETF. For the week ended Friday, XLF however was up rising +2.1%. Notice that XLP -4.4% and XLI -8.1% for the week, have also been moved to the down trending sector list. The big mover to the downside was XLV -11.1%, with the new uncertainty arising from the healthcare reform underway in Washington. Big money reacted strongly by selling heavily throughout the week. Even though the SPX slipped to a new low this week the VIX also fell from last Friday, this is a non-confirmation of the SPX move down this week. The SOX Semiconductor Index was also up for the week. ALTR, AMAT, MRVL, NSM and XLNX all closed on Friday above last Friday’s close. Nasdaq stocks AMZN, BIDU and PCLN also finished the week higher than last week’s close. Index Commentary The SPX broke Monday’s Feb. 23 support low and its November support low on Friday. This is a shift in trend to down…be aware the break is only by 6 points and this could turn into a fakeout. Monday’s R1 is short-term resistance. The DJIA broke the November support low and the support low formed last Monday and is down trending. Feb 23 R1 is now short-term resistance. The Nasdaq is still above its November support lows and formed a doji pattern on Friday that could be the second candle of a potential morning star pattern. The RUT is also above its November support low and formed a doji that could be the second candle in a potential morning star pattern. Monday’s R1 is the short-term resistance area. Stock Commentary Many of the coal stocks BTU, CNX, KOL and WLT stayed above Monday’s low support indicating accumulation was still taking place this week. Steel stocks NUE, SCHN, STLD and X continued to experience selling pressure on Friday as they fell below Monday’s support low. Rail stocks BNI, CSX, NSC and UNP all slipped below Monday’s support. Ag-related stocks POT, MOS, CF, IPI and AGU held above Monday’s low and showed strength. Stocks to Watch on Monday Leading Stocks: Holding Above 30 DMA NFLX, VPRT, AMZN, BIDU, CLB, GME, PCLN, MOS Moving Above 30 DMA = 4 BKC, JCOM, SLGN, WRC Moving Below 30 DMA = 4 DLB, FLS, ICE, MYGN Staying Below 30 DMA CPLA, ESRX, GES, PSYS, CHL, DECK, GIL, MHS, TDG, SPWRA, AMED, APEI, BIIB, GMCR, GPRO, GXDX, HANS, MON, PCP, RBN, AAPL, CTSH, DV, ESI, VAR, SYNA, WCG, ATW, BLUD, JW.A, MUR, ORCL, RCI, SWN, GR, FSLR, HLF, EBAY, AMX, STRA, PCR, PWR, RIMM, BDX, BYI, CAM, PPD, ACN, NIHD, SNHY, JOYG, DLTR, K, JOSB, JEC, PETS, NTLS, BAP, HDB, CBST, SNA, AFAM, EZPW, WAB, ALGT, AXYS Friday’s Action (=> +0.70 or -0.70) Moving Up: MOS, MA, HANS, CF, GOLD, IPI, NEM, AEM, FSLR Moving Down: ESRX, AFAM, STRA, MS, ZION, NUE, GS, KBE, UAUA, NDAQ, SCHN, ONXX, CLF Intermediate Term Market Trend: Neutral – Nasdaq, RUT; Down – DJIA, SPX Short Term Market Trend: Down