By Markus Heitkoetter
Stocks started the day on a positive note after the S&P opened with a 20 point gap higher. But the rally didn’t last long. By late morning stocks had erased early gains and were back in negative territory.
The S&P lost 13 points and ended the session at 1989.63. The pivotal 2000 mark acted as both support and resistance during the session. As we saw today the 2000 level could remain a key trading level throughout the trading week.
The DOW dropped 100 points and ended the day at 17180.84. While the S&P responds to key support/resistance the DOW is creeping up on key support as well. The DOW is just 180 points above the 17,000 mark, a level that acted as both support & resistance multiple times in 2014.
Crude Oil continues to be a game changer…
While stocks try to push higher, weakness in Crude Oil continues to put some serious pressure on the markets. Today Crude slide another 3+% closing at $55.69 a barrel. At one point Crude Oil was down over 4%.
The financial situation in Russia didn’t make things any easier today, as Russia’s currency problems are only getting worse. Today the Russian ruble lost more than 10% and fell to another all-time low against the dollar.
Merck & Company (MRK) is one of the latest DOW 30 stocks to produce a Power Crossover Method Sell Signal. With today’s 1.33% drop, a PowerX short signal was triggered at $57.70. Traders using the PowerX ADR Profit Target are looking for a target at $54.02.