Mid-Session Market Comment 05-07-2014

U.S. stocks rose this morning at the open, they then fell, and are now rebounding. Major indices are now trading mixed with Dow and S&P 500 up and Nasdaq and Russell 2000 down. Putin's intention to solve the Ukrainian crisis and Federal Reserve Chairman Janet Yellen's optimism on the economy and willingness to continue maintaining accommodative policy are positives for the stock market . But significantly weaker social network SOCL, Internet FDN and biotechnology IBB sectors dragged down NASDAQ Composite and are weighing on the general market. Technically, the Russell 2000 fell below its 200-day moving average at 1114  caused it to drop again early this morning . However, when it  dropped to about 11 points near its February low of 1082, it started to bounce. As for the Dow , after testing its 50 day moving average 16363 level earlier, it bounced up strongly again and have gone from negative to positive. The stock market may have bottomed out short-term and likely begin a rebound. Dow may challenge its record high at 16,631 level again.