Mid-Session Market Comment 05-06-2014

U.S. stocks fell this morning at the opened, Dow was down about 100 points earlier, rebounded and is now falling again . Major indices fell by about 0.5% on average. Tense situation in Ukraine continues and downside actions of the the  European stock markets negatively impacting US stocks. Weakness in Social network SOCL, home builders XHB, Financials XLF, Internet FDN, and retailers XRT sectors also weighed on the market. Technically, the Dow and S & P 500 are above the 50 day moving averages, their trends are up but the Nasdaq and the Russell 2000 are below their 50 days and 100 days moving averages, their trends are down. For the last couple of days the Dow has been trying to hold its 50-day MA at 16358 while the Russell 2000 attempt to hold above its 200 day moving average at 1114 , if these support levels got pierced to the down side, indexes will continue to test their lows. Due to  increasing tensions in Ukraine and the S & P 500 VIX volatility index display overly optimistic investor sentiment, coupled with May is a weak month for stock, the chance of these support levels breaking down is high.