Financials and techs were weak for the 2nd straight day.  On the other hand, commodity-related sectors bounced.  Metals and mining groups were strong.  Coals showed a lot of strength: MEE +7.58%; CNX +6.53%; BTU +7.64%.  Oil services also recorded solid gains:  RIG +2.46%; SLB +3.93%; NOV +4.37%.  Crude oil closed above $115/barrel.  Gold also went higher, above $815/ounce.  AEM, a gold miner, jumped almost +5% today.

After the market, HPQ reported good earnings and gave a solid guidance going forward.  HPQ shares traded higher by +2.88% in AH trading.  PAY also provided a strong outlook and sent its stock soaring up more than $5, or +34%!!  PAY shares have slumped from $50 late last year to today’s close of $14.73.  It is trading nearly $20 in after-hours.

The Dow was down 130.84 points; SPX lost 11.91 points; Nasdaq fell 32.62 points:

SOX (semiconductors) dropped 2.26%.  XLF (financials) was down 2.92%, while HGX (housing) slipped 3.5%.  Commodities were strong:  USO (oil) +1.62%; UNG (natural gas) +1.97%; GLD (gold) +2.07%; XME (metals and mining) +2.51%; OIH (oil services) +3.36%; XLE (energy) +3.59%.  FXI (Chinese ADRs) slid 1.42%.  Foreign currencies also bounced.

SPX

SPX lost 11.91 points to close at 1266.69.  It closed just above its 30-day MA.  The MACD was lower.

Nasdaq

Nasdaq fell 32.62 points to close at 2384.36.  It closed below its 10-day MA.  The MACD dropped.

The market is in a dangerous place right now.  SPX is testing its 30-day MA.  The financials continue to look weak, with XLF closing below $20.  GS has fallen from above $180 to now below $160 in a little more than a week.  $160 was the support level that GS has held since March.  Commodity-related sectors are bouncing and starting to establish bottoms.  The market’s recovery is in jeopardy.  Any further push can send SPX back to 1240.  Money could be looking to swing back to commodities again.  However, the major market indices are still showing bullish formations in their daily charts.  Asian markets have also been weak, especialy the Hong Kong Market (HSI, Hang Seng Index), which is now at a new year low.  So, be very careful.