Markets Move Lower on Wednesday...

DJIA - 184.22, -2.18% SP500 - 24.43, -2.69% NASDAQ Comp. - 51.32, -3.01% Russell 2000 - 23.36, -4.72% Exchange NYSE NASD Advancing 524 412 Declining 3,255 2,347 Oil $58.02 -$0.83 Gold $925.50 +$2.00 SOX 236.80 -5.73 VIX 33.65 +1.85 The VIX moved up and did confirm the move down in the SPX on Tuesday. Strongest Sectors: XLV -0.23%...XLP -1.83%...XLK -2.52% Weakest Sectors: XLF -5.08%...XLB -4.33%...XLI -4.14% All nine Sectors moved lower on Wednesday. Healthcare, Consumer Staples, Technology and Utilities did not fall as much as the SPX -2.69%. Financial stocks came in as the weakest sector falling -5.08%. Financial stocks stronger than XLF: CME, TRV, ICE, AOC, CB, BK, NTRS, MMC, USB, JPM, ALL STT, GS SCHW, IVZ and MS. Sector Watch Up Trending: Horizontal Breakout: XLB, XLK Sideways: XLY, XLE, XLV, XLF, XLP, XLI Down Trending: XLU SPX Key resistance levels: 944 = horizontal 954 = 200 DMA 957 = short term chart target Key support levels: 904 = weekly S1 891 = 38.2% Fib level 875 = horizontal The SPX fell below the 891 support level to 883, just above its 20 DMA at 879 and its 875 horizontal support level. After a 3 hour rally Tuesday afternoon futures fell in Europe overnight. The SPX opened lower this morning and sold off. We alerted you this morning before the open to “watch for bounce or break and trade accordingly.” If you are a short term trader you should have been able to take advantage of the support break today. As we stated in this morning's post Wednesday's sell off is being attributed to the Retail Sales report for April that came in at -0.4% less than a forecast of +0.1%. Generally economic reports can influence trading for a day or two but seldom alter the intermediate term trend. If the SPX breaks support area of 875, the 61.8% Fib retracement is at 865. The levels below that are 848 and 825. Trade accordingly. (click image to enlarge) Index Commentary The DJIA…large black candle that did confirm Monday’s bearish harami…fell below horizontal resistance at 8,405 and closed within 80 points of its 20 DMA…three month chart target 10,340…volume slightly below average at 336 million shares, similar to Tuesday’s volume…closed above its 20, 30 and 50 DMA. The SPX formed a large black candle that did NOT confirm Tuesday’s hammer…3 month chart target of 1,075…closed above its 20, 30 and 50 DMA. The Nasdaq formed a large black candle that broke below its 20 DMA and fell to its 30 DMA and horizontal support level of 1,665…it is below its 20, 30 and 200 DMA…3 month chart target of 2,065…closed above its 50 DMA. The RUT formed a large black candle that broke below its 20 DMA and closed just below it 30 DMA and 474 horizontal support area…3 month chart target 606…closed above its 50 DMA At the Open on Thursday SPY – large black candle did not confirm hammer FAS – large black candle STT – large black candle did confirm hammer still in bull flag WYNN – large black candle break support of horizontal flag KOL – large black candle did not confirm hammer SCHN – large black candle did not confirm hammer/bullish harami EBAY – large black candle stays above gap support at 200 DMA SNDA – large black candle ZION – black candle in bull flag ADBE – large black candle above bullish engulfing support J NPR – black candle in bull flag above gap support CTV – black candle falls to gap support BBT – gap down white candle OSG – gap down black candle does not confirm hammer in bull flag EL – black spinning top breaks gap support Stocks to Watch on Thursday Leading Stocks Holding Above 30 DMA BIDU, CLB, ICE, DLB, VPRT, CTSH, BAP, CAM, GMCR, ATW, GR, SYNA, EBAY, HDB, PCP, UYG, FSLR, RIMM, WCG, HLF, AMX, MHS, WAB, FAS, AFAM, K, RBN, ESRX, PCLN, VAR, PCR, PPD, HANS, SWN, FLS, TDG, NIHD, RCI, STRA, ACN, AMED, JOYG, MON, MUR, PSYS, NTLS, CHL, DECK, MOS, DV, PETS Moving Above 30 DMA = 1 BDX Moving Below 30 DMA = 13 AAPL, AXYS, BYI, CBST, CPLA, GES, WRC, SNA, SNHY, SPWRA, WMT, X, URE Staying Below 30 DMA AMZN, EZPW, GXDX, JOSB, JW.A, JEC, MCD, PWR, DLTR, USD, DECK, ORCL, SYNA, ALGT, JCOM, NFLX, GME, GILD, GPRO, MYGN, SLGN, BIIB, BKC, APEI, BLUD, ESI Intermediate Term Market Trend: Neutral Short Term Market Trend: Down