A short rally early in the week was quickly repelled as bears continue to hold the reigns and drive the market lower. All three indices finished the session and week today well in the red, trading on heavy distribution volume. Are multi-year lows around the corner?
The worst performing index continues to be the Dow Jones Industrial, followed by the S&P 500. The NASDAQ Composite is still the strongest index which as you will see below is still holding onto its key 2400 support level. The strong names in tech like Research in Motion (RIMM) are currently the only stocks holding this index together.
Heading into next week stocks like RIMM are exactly where my attention lies. Apple (AAPL), Google (GOOG), and Goldman Sachs (GS) are other key names to focus on. If these stocks, which are still technically "alive" collapse, then the last piece arguably holding this market together is gone and we may be in a whole heap of trouble.
The smart investors have been riding the commodity train as coal, oil, steel, and fertilizers all continue to be red hot. They don't need the market's bullish blessing to make money, and something tells me I want to be hanging out with them for a while longer. Yay, that sounds nice...