Mid-Session Market comment 05-14-2014

U.S. stock market opened down this morning, it then slipped more and have been maintaining its decline. The Russell 2000 decrease of approximately 0.8%, while other indexes fell by an average of about 0.2%. U.S. April PPI came in at 0.6%, substantially higher than 0.2% estimate raised worry of  Fed tightening is to accelerate. Yield of the 10 year Treasury fallen below three and a half month trading range low makes people to think the US economy might not be as well as expected. Meanwhile, the Ukraine tension continues and the territorial dispute in South China Sea between China and Vietnam has led to violent riot against Chinese and Taiwan citizens in southern Vietnam. Two are reported death and thousands of Taiwanese and Chinese factory were destroyed. Technically, the Russell 2000 today continues to plunge and has fallen below its 200-day moving average 1115 level again. Its bearish trend continues. It is looking like the divergence between Dow and S & P 500's up trend and the Nasdaq Russell 2000's down trend may have resolved with the down trend being the winning side. Down side action likely continues today with the Russell 2000 support at 1091 and Dow support at 16585.