AREX reported earnings this past week and though the earnings came in as expected, sales came in less than expected and that caused a strong sell off to occur. The stock made a new all-time intra-week low below the previous one at 3.20 as well as generating a new all-time weekly closing low below 4.64 for 3 weeks in a row. The stock closed just slightly below the mid-point of the trading range (closed at 2.77 with 2.90 being the mid-point), opening the door for a possible spike bottom, such as was seen in March 2009 when the stock got down to 3.20 and rallied up to 10.47 just 10 weeks later. Resistance is found at the gap area caused by the earnings report at 2.90-2.98. Above that level there is no resistance until the previous low daily and weekly closes at 4.57 and 4.64 are reached. Probabilities favor the bulls, if only because at these prices there is very little to accomplish to the downside and the company is still deemed as a "stable" company. Any rally in oil prices will help the stock recover.

ARNA reported earnings that disappointed and the stock made a new 6-month low, reverting back to the stock price between 3.40 and 3.65 that it was trading at prior to the January earnings report. The stock closed on the lows of the week and further downside below last week's low at 3.48 is expected to be seen. Intra-week support is decent to perhaps strong at the intra-week double bottom that is found between 3.26 and 3.30. Nonetheless, if the stock drops down to that price it will become a triple bottom and as such, likely to get broken. Daily close support is found at 3.52 and then at 3.32. If the bulls are able to turn the stock around to close in the green on Monday, they will receive a "small" booster-shot-in-the-arm as an inverted Head & Shoulders on the daily closing chart will have been formed. If that happens and the bulls also are able to close in the green next Friday, the support will have been confirmed as strong and unlikely to get broken. Nonetheless, having failed to generate new buying 5 weeks ago when the stock ran up to 5.12 and now looking at a situation with Belviq that does not suggest the drug is being accepted as readily as needed, the bears now have the upper hand and the bulls are playing a defensive game. A break below 3.26 will likely take the stock down to the 2.50-2.80 level where the stock languished for most of 2008-2010. Resistance will now be found at 4.00 and at 4.17. A close above the 200-day MA, currently at 4.37, is needed to reverse direction. Probabilities favor the bears.

ENG reported earnings on Thursday after the close, which were slightly better than expected, but when the bulls failed to get the stock above the 1.31 support-now-resistance daily/weekly closing level on Friday, a negative reversal day was seen with the stock getting back to the 22-month low seen earlier in the week at 1.10. The stock closed near the lows of the week and further downside below 1.10 is expected to be seen. Support is found between .93 and 1.00 and if further downside is seen this week, probabilities will favor the stock reaching that level. By the same token, the stock has now shown 6 quarters in the profit column and with the company now working hard to generate new business, it would not be surprising to see the stock turn around soon.

FCEL made a new low below the previous low at .80 and is now in free-fall with no support below to shoot for. The value of the company at this present time is stated at .37 per share, suggesting that level might be a possible downside objective. Nonetheless, on Friday the company announced the addition of 2 new members to the Board of Directors that bring to the table additional experience in the energy industry. As such, it is possible and maybe even likely that a new approach to increasing the company's business will be forthcoming. From a chart point of view, a retest of the .80-.84 cent level is likely to be seen. Any daily and especially weekly close above .84 would be a positive. Nonetheless, for the present the probabilities favor the bears.

FSLR reported much better than expected earnings on Wednesday and the stock gapped up and closed above the 200-day MA, currently at 51.40, for the last 3 days of the week. The stock closed on the highs of the week and further upside above last week's high at 53.48 is expected to be seen. Minor intra-week resistance is found at 53.67 and then no intra-week resistance is found until the $59-$60 level is reached. Nonetheless, on a weekly closing basis, the stock does show the 50-week MA, which was a line that when broken generated the 12-week drop seen right after the previous earnings report, meaning that on a weekly closing basis it can be considered resistance. Right after the earnings report, 3 analysts gave a $68-$70 upside objective. Support is found at 49.01 but any confirmed close below the 200-day MA would be considered a negative. Probabilities favor the bulls.

HD generated a negative reversal, having made a new all-time high above the previous one at 117.99 as well as above the high seen the previous week at 118.13 but then closing in the red and in the bottom half of the week's trading range, suggesting further downside below last week's low at 115.78 will be seen this week. More importantly, the red weekly close made the previous weeks close at 117.03 into a successful retest of the all-time high weekly close at 117.49. If the bears are able to generate another red close next Friday, it will be seen as a major double top and new selling interest will appear. Nonetheless, the fact the red close was only 10 points below the previous week's close does leave the door open for a failure to confirm the double top and resumption of the recent uptrend. A new high above last week's high at 118.52 would now be a strong sign that the reversal failed and that further upside, likely with a minimum of $120 objective will be seen. Support is not found until the 112.71 level is reached, which does include the 50 and 100 day MA's, which on a daily closing basis are pivotal. Probabilities slightly favor the bears but the key word is slightly. A hard stop should now be placed at 118.73.

KMX generated a reversal week, having gone above the previous week's high and then closing in the red and near the lows of the week, suggesting further downside below last week's low at 61.64 will be seen. The reversal was particularly indicative, inasmush as the high for the week at 65.80 is now considered a successful retest of the 200-day MA, currently at 65.50, that got broken 11 trading days ago, meaning that the break of the line has been confirmed and further downside is likely to be seen. Support is found betwee 60.83 and 61.04 but below that level there is no established support other than very minor support at 57.92. A break of the 33-week intra-week low at 60.83 would suggest that the stock would visit the previous all-time high at 53.71. Pivotal resistance is now found at 65.80. Probabilities favor the bears.

PGR went above the previous week's high, meaning that if the stock starts heading lower this week and break's below last week's low at 30.30, that a successful retest of the all-time high at 31.42 will have occurred. The stock closed in the middle of the week's trading range, likely meaning that the traders are waiting to see what the index market does and follow that lead. Minor resistance is found at 30.84 and stronger at the 2 previous all-time highs at 31.23 and at 31.42. Support is found at 30.30, likely at the bottom of the $30 demilitarized zone at 29.70 and down to the gap area between 29.47 and 29.53. Should the runaway gap at 29.47 be closed, no support is found until the 28.00-28.50 level is reached. Probabilities still favor the bulls but slightly.

PRAA, like the NASDAQ, generated a second negative reversal in a row, having gone above the previous week's high but failing to go above the previous high made 3 weeks ago at 64.82 and then closing in the red. The action seen over the past 7 weeks, in which the stock has gone above 64.00 on 5 of those weeks, but the bulls failing to break the all-time high, does suggest that unless the indexes go higher, the stock is likely to generate a correction of some consequence. The stock did close near the lows of the week and further downside below last week's low at 62.51 is likely to be seen. Intra-week support is found at 61.29 and strong as well as pivotal at 60.24. Probabilities slightly favor the bears.

VHC generated a reversal week, having gotten above the previous week's high at 4.65 and then closing in the red and near the lows of the week, suggesting further downside below last week's low at 4,37 will be seen this week. The most important thing to mention is that the probabilities favored the stock going above the previous week's high and taking out the pivotal resistance at 4.75 but the bulls failed to get the stock above 4.68 and that likely means the resistance level has been tested successfully and that some new selling interest will be seen this week. Support is found at 4.29 and at 4.08. If 4.29 is broken, the probabilities will favor the 4.08 level being broken as well and if that happens, the small amount of positive work that has been done over the past 6 weeks will be erased and new 9-month low below 4.05 will likely be seen. Probabilities are about even but with the indexes likely to be under sell pressure, the bears might have the edge.

XOM continued its 14-week downtrend since testing successfully in May the break of the 200-week MA that occurred in February, having generated yet another red close (the 11th out of the last 13 weeks) and again closing on the lows of the week, suggesting further downside below last week's low at 76.61 will be seen this week. The stock has now broken the intra-week supports at 77.13 and at 76.78 that were supposed to hold up, meaning that if the stock does get below last week's low by more than 10 points, that further downside of consequence is likely to be seen. Under that scenario, the $70 level would become the objective. The probabilities do favor the bears but this is a very strong company that was given a conviction buy by GS just a couple of weeks ago and that is unlikely to continue much lower unless oil prices continue substantially lower as well. With oil now near its 6-year low at 42.03, seen just 4 months ago, and having gotten down to 43.70 last week, this coming week is likely pivotal.