Mid-Session Market Comment 04-03-2014

Major U.S. stock market indices opened this morning small gains and have been trending lower. Increase in Initial Jobless Claims, ISM services index lower than expected and trade deficit in February expanded are having negative impact on the stock market. Last week's sharp pull back of high momentum sectors such as Social Networking  (SOCL), Biotechnology (IBB) and  Internet (FDN) reasserting their devastating weakness also dragged down the stock market. Technically, the Dow has made a new record level of 16,606.15 this morning, while the S & P 500 hit a record high of 1,893.80. However they pulled back immediately after hitting new highs . They are now only down approximately 0.20% Vs the Russell 2000 and the Nasdaq falling by about 1%. These four indices are diverging again. Despite the major market indices are still above their 50-day moving average and maintaining their up trends, however if the Russell 2000 and the Nasdaq Composite continues with their weakness, the overall market will follow. The main focus for today is Dow support at 16,500, falling below this level will lead to even greater stock market decline.

Momentum stock performance today: