SPX Falls Following Fitch Report on Banking Industry....

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All nine sectors moved lower on Wednesday after Fitch issued a report stating that the credit outlook for the U.S. banking sector could worsen if the Euro Zone debt crisis is not resolved in a timely and orderly manner. XLP -0.89%, XLU -1.20% and XLI -1.47% were the strongest sectors.

The Euro was down 72 pips to 1.3451 at 5 pm EDT on Wednesday reaching its lowest level since Oct 9. TLT was up 1.07. Financials XLF was down 32 cents.

The broad indexes moved lower with the RUT -1.78%, NDX -1.77%, COMPQ -1.73%, SPX -1.66% and INDU -1.58%. The SPX moved down -20.90 to close at 1,236.91.

The SPX fell to its diagonal support line in its symmetrical triangle in the last hour of trading. The Euro and ES futures rose Wednesday evening.


With today’s sell off following the Fitch report, its seems improbable that the support bounce we expected this week to the 1,277 to 1,292 resistance area will occur. The SPX price target is still 1,363 within the 10 week time window we mentioned when the SPX broke out of the 1,220 resistance area four weeks ago.

The VIX moved up +2.29 to 33.51.

AAPL, AMZN, BIDU, GOOG, PCLN and QCOM moved lower on Wednesday.

Breadth weakened as decliners led advancers 3.20 to 1 on the NYSE and 2.75 to 1 on the NASDAQ.

Exchange       NYSE     NASDAQ
Advancers         720          682
Decliners        2,309       1,880

Leading stocks > +2% on Wednesday WDC, FAZ, ZAGG, UCO, NTES, ARUN, IL

Losing stocks < -2.0% included ANF, LDK, FAS, UAL, CROX, ANR, PCX, LNKD, GS, VECO, C, DECK, HUM, MCP, BAC, SWK, CLF, ICE, CRM, FCX, TPX, KKD, CMG, NDAQ, ATI, GES, RVBD, SWN, F, SWKS, DOW, TIF, DHR, COH, JNPR, CDE, NKE, STI, X, MOS, HLF, V, AKS, VMW, URE, NVDA

NDX 100 stocks stronger than the NDX included MU, GMCR, ADSK, JOYG, ATVI, RIMM and ADBE.

Stocks weaker than the NDX include NFLX, WCRX, ILMN, CHKP, NWSA, FLEX, ALTR, WYNN, ESRX and CMCSA.

Twenty three NDX stocks including ALTR, ALXN, CHKP, NVDA, ORCL, VOD and YHOO moved below their 30 DMA leaving 44 NDX stocks above the 30 DMA.

Stocks to Watch on Thursday
Holding Above 30 DMA = 48
FFIV, SNDK, NKE, COH, UNP, DHR, SMH, SWK, TIF, VMW, JNPR, NGLS, CAT, DLR, SWN, RVBD, SLB, UCO, AKS, GLW, A, CIEN, URE, ATI, CF, DE, FCX, HUM, ANR, HAL, DE, CLF, SLW, CRM, JDSU, LVS, X, INFA, NDAQ, V, CREE, KKD, FAS, IBM, CHL, WLT, TLT, CRUS
Moving Above 30 DMA = 2
ARUN, NTES
Moving Below 30 DMA = 8
CMG, DECK, DOW, HLF, ICE, NVDA, PCX, TPX
Staying Below 30 DMA
GES, LDK, MOS, RCL, VECO, C, ENTR, FWLT, GS, SOHU, STI, ZION, MCP, TSL, BAC, CSTR, F, IL, POT, SINA, SWKS, WDC, ZAGG, LNKD, ANF, ESI, TBT, UAL, CROX, FAZ, GRPN

Six Week Intermediate Term Market Trend: Up
Short Term Market Trend: Down