Stocks Break Below Low of High Day....Gold, Oil Fall...

DJIA - 65.63, -0.75% SP500 - 12.98, -1.37% NASDAQ Comp. - 10.88, -0.59% Russell 2000 - 3.92, -0.74% Exchange NYSE NASD Advancing 807 1,058 Declining 2,143 1,633 Oil $66.12 -$2.43 Gold $964.50 -$18.70 SOX 270.18 -6.11 VIX 31.02 +1.39 The VIX moved up and did confirm the move down in the SPX on Wednesday. Strongest Sectors: XLV -0.23%...XLP -0.50%...XLK -1.10% Weakest Sectors: XLE -3.85%...XLB -3.43%...XLI -1.95% All nine sectors moved lower on Wednesday. Healthcare, Consumer Staples, Technology, Consumer Discretionary and Financials were stronger than the SPX -1.37%. Financial stocks stronger than XLF -1.32%: TROW, IVZ, RF, BK, MMC, AOC, SCHW, USB, SPG, TRV, CB, GS, NTRS, ASP, WFC and MS. Leading tech stocks stronger than XLK -1.10% include: MSFT, AAPL, GOOG, VZ, EBAY, ORCL, TXN, IBM, MA, HPQ and QCOM. Sector Watch Up Trending: Horizontal Breakout: XLB, XLK, XLY, XLE Sideways: XLV, XLF, XLP, XLI, XLU Down Trending: SPX Key resistance levels: 944 = January horizontal 962 = 161.8% Fib extension Key support levels: 930 = horizontal & 200 DMA 913 = Friday’s S1 907 = Friday’s S2 899 = Thursday’s S1 875 = horizontal Our Yellow Alert on Tuesday turned to red on Wednesday as the SPX, DJIA and many individual stocks broke and closed below the low of the high day. This is a potential sell signal for short term traders. The SPX which broke the 925 – 930 horizontal resistance on Monday and rose to its 944 horizontal resistance from January fell back to 924 before rising into the close at 932. The Nasdaq and RUT rallied from their lows to close near their open and above the low of the high day, both forming a bearish harami. Old resistance potentially becomes new support and that was certainly the case at least for Wednesday. If the 925 – 930 area holds look for a bull flag type of support bounce as this would represent a higher low in the up trend of the past 12 weeks. If the 925 – 930 support does not hold look for a move down to the 913 area. Oil and gold prices also fell leading energy, solar, coal, Ag-related, steel and gold stocks lower. BIDU, GOOG, AAPL and AMZN along with biotech stocks like, CELG, GENZ, AMGN, CEPH, GILD and BIIB moved higher. Index Commentary The DJIA formed a black candle with lower shadow that bounced at Monday’s S1…three month chart target 10,340…volume was a below average 252 million shares …closed above its 20, 30 and 50 DMA. The SPX formed a black candle that close at Monday’s S1 and 930 horizontal resistance area…3 month chart target of 1,075…closed above its 20, 30, 50 and 200 DMA. The Nasdaq formed a doji bearish harami…3 month chart target of 2,065…closed above its 20, 30 50 and 200 DMA. The RUT formed a hanging man bearish harami….3 month chart target 606…closed above its 20, 30, 50 and 200 DMA. At the Open on Wednesday SPY – break low of high day KOL – break low of high day USD – break low of high day confirm bearish harami FAS – break low of high day CTV – break low of high day JOYG – white spinning top X – break low of high day ADBE – doji break low of high day OSG – fell to 30 DMA ZION – break spinning top UNG – break low of high day NTAP – fell to 30 DMA FWLT – break low of high day XRT – bearish harami SHLD – bearish harami, above S1 ISRG – bearish harami above S1 ORLY – large white candle CELG - large white candle breakout continuation Stocks to Watch on Thursday Leading Stocks Holding Above 30 DMA BIDU, CLB, ICE, VPRT, CTSH, BAP, CAM, GMCR, ATW, GR, EBAY, TRLG, HDB, PCP, RIMM, WCG, UYG, HLF, AMX, MHS, K, PCLN, VAR, PCR, PPD, SWN, FLS, TDG, NIHD, RCI, ACN, JOYG, MUR, PSYS, CHL, MOS, DV, AXYS, BIIB, BYI, CPLA, SPWRA, SYNA, X, MCD, BDX, CBST, AAPL, AFAM, DLTR, ESRX, GES, GXDX, ORCL, RBN, USD, WRC, DECK, FAS, WMT, CPLA, JEC, MYGN, PWR, URE, AMZN, DV, EZPW, JCOM, JOSB, JW.A, NTLS, SNA, SNHY, STRA, BLUD Moving Above 30 DMA = 2 APEI, GILD Moving Below 30 DMA = 2 FSLR, WAB Staying Below 30 DMA DLB, ESI, HANS, URE, MON, AMED, PETS, PWR, ALGT, NFLX, GME, GPRO, SLGN, BKC Intermediate Term Market Trend: Neutral Short Term Market Trend: Neutral