1:20pm (EST) The bears have used a bevy of negative news to push the market down to support levels once again. Oil, China, Spain, and unemployment claims are the major negative headlines that led to a big gap down at the open which is where we have spent much of today’s session. Oil is down $2 to $102 but the geopolitical concerns in Libya have gotten more serious. Moody’s (MCO, $31.93, down $0.46) downgraded Spain’s debt and issued a negative outlook. China’s posted its largest trade deficit in 7 years at $7 billion. And finally, here in the U.S., initial weekly jobless claims were greater-than-expected at 397,000 while the trade deficit for January increased to $46.3 billion from $40.3 billion in the prior month. As result, all three indexes are right at support and at crucial levels of a trend change. The Dow is off 154 points to 12,058 and has touched a low of 11,988. We have been mentioning support at 12,000 and that got stretched but the bulls have to hold this level going into the close. The S&P is down 17 points and is at 1,303 after kissing a low of 1,295. The bulls are trying to hold 1,300 but a close below here could lead to 1,275 and then 1,250. The Nasdaq is getting whacked for 36 points and is at 2,715. The index has traded to a low of 2,695. The bulls will be trying to hold 2,700 into the close. Although today’s sell-off looks nasty, there is a good chance the bulls hold these levels. Sometimes it’s easy to imagine the future, profiting from it is a different story. We do have some good news for you though and some of our subscribers are having a good day on the Green Mountain Coffee Roasters (GMCR, $58.00, up $60.81, up $17.17) news. The company has teamed up with Starbucks (SBUX, $37.77, up $3.23) and will offer a K-cup to coffee lovers.
