WALL STREET : DJIA Sinks 117 Points as the Bearish Stars Align

The SPX and COMP are in danger of surrendering support at their 10-week trendlines
The bears stormed the proverbial castle right out of the gate today, as disappointing revenue from Alcoa (AA) struck an ominous chord ahead of a round of corporate earnings reports on the calendar. In addition, news that Japan's safety regulators upped their assessment of the current nuclear crisis to Chernobyl-esque levels also weighed on stocks across the globe. Meanwhile, a chorus of concerns about energy demand sent oil futures and commodity stocks spiraling lower, further setting the skeptical scene on the Street. With a multitude of catalysts to fuel the bears, the major market indexes ended the session right where they started: swimming in red ink.

The Dow Jones Industrial Average (DJIA – 12,263.58) settled with a deficit of 117.5 points, or nearly 1%, as only seven of its 30 components finished higher. Leading the elite minority were Procter & Gamble (PG) and Wal-Mart Stores (WMT), which tacked on 1.1% and 1.3%, respectively, while Alcoa (AA) -- unsurprisingly -- led the laggards with a loss of more than 6%. While the Dow ended beneath its 10-day moving average for the first time since March 18, the blue-chip barometer maintained its perch atop its 10-week trendline.

Meanwhile, the S&P 500 Index (SPX – 1,314.16) gave up 10.3 points, or 0.8%, by the close, but found an intraday backstop at its 20-day moving average. Likewise, the Nasdaq Composite (COMP – 2,744.79) gave up 26.7 points, or nearly 1%, though its retreat was softened by support at its own 20-day trendline. From a broader technical standpoint, both the SPX and COMP are now in danger of ending the week south of their 10-week moving averages.

Crude Fizzles As Dwindling Demands Fear Arises

Crude futures cascaded into the red today, thanks to widespread fears about fizzling demand. To start, the International Energy Administration (IEA) said lofty prices are diminishing the collective appetite for crude, while Goldman Sachs predicted a "substantial pullback" for black gold in the coming months. In addition, the Organization of Petroleum Exporting Countries (OPEC) trimmed its current-year forecast for oil demand, while Saudi Arabia cut production by 500,000 barrels per day on evidence of ebbing demand. Against this backdrop, May-dated crude oil futures shed $3.67, or 3.3%, to end at $106.25 per barrel -- the front-month contract's steepest single-session percentage drop since March 30.

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