The S&P index generated a negative signal for the third week in a row. It also formed a bearish outside month/lower close which marked the worst monthly performance since the March 2009 low. Sector weakness was noted in Energy/Commodity related amid Dollar gains (Coal KOL -4.5%, Gold Miners GDX -3.4%, CRB Index -2%, Steel -1.6%, Oil USO -1.4%, Oil Service OIH -1.6%, Energy XLE -1.8%, Materials XLB -1.6%, Ag/Chem MOO -1.7%). Technology also provided downside leadership (Semi SMH -3.1%, Disk Drive -5.2%, Computer-Hardware -3.9%, Software -2.4%, XLK -1.7%) along with Reg Bank -2%, Casino -2.4%, Broker IAI -1.9%. Limited gains were noted in Biotech BBH +0.8%, Retail RTH +0.3%, Credit Card and Treasuries. The worst stretch of action for the market in 11 months leaves it extended on a short term basis but price patterns will remain weak unless the S&P can clear 1077/1078 and the 1081 area early next week. Support below the low/congestion (1071/1069) comes into play in the 1066/1064 area . Maintain primary level of Standard & Poor’s 500 index to the 1020 – 1099 range, while using mid-term support at 1094.35.

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