Mid-Session Market Comment 05-15-14

U.S. stocks fell this morning at the open and have been trending down. At the present major indices are falling more than 1% on average.  U.S. April consumer price index came in higher than expected ,industrial production fell 0.6% in April and fell the most in five years, 10 year Treasury yield has fallen below 2.5 percent indicating skepticism on US economic recovery.  Technically, earlier the S & P 500 fell slightly below the 50-day MA 1867 , Dow fell to about 18 points to the 50-day MA at 16400, Russell 2000 touched February low of 1082 level and they are all rebounding . These important supports are the basis for a short-term market bounce. Russell 2000 may bounce towards 1116. Although market's bullish sentiment has weaken after today's fierce selling. The above mentioned support levels will likely be retested after a brief bounce.