Mid-Session Market Comment

Major U.S. market indices opened this morning with small losses, they then began to plunge 10 minutes after trading start , they are now down sharply by over 1%. Yesterday's exuberance on interest rate may not rise as early as expectation after Fed meeting minutes were released has subsided today. Instead, news about Russia may stop the supply of natural gas to Ukraine and Europe raised investor concerns on increasing tension in Ukraine situation. Pessimism on corporate earnings also asserts downward pressure on the market.  High momentum sectors such as Biotechnology IBB, Internet FDN and social networking SOCL again led the stock market down. Technically, both the Nasdaq and the Russell 2000  after regaining 100 days moving averages yesterday have fallen below them again today. Today's bearish action has generated sell signals for these two indexes.  Their next supports are 4000 and 1100 respectively. Blue-chip indexes, the Dow and the S & P 500 have also been dragged down ,they are falling towards their 50-day moving average support at 16173 and 1843 respectively. The stock market will likely continue to go down all day today.