The week wraps up with the Dow Jones Industrial Average (DJIA) posting a 140-point loss. A mid-afternoon bounce failed to gain momentum and the Dow ticked to a new low for the session in the final minutes. The S&P 500 (SPX) and Nasdaq Composite (COMP) each dropped over 2% while the Russell 2000 (RUT) lost more than 4%. This leaves the indices with losses on the week ranging from 3.7% (the COMP) to 4.8% (the DJIA and RUT).

Turning to the sector action for the day shows little change from what we saw this afternoon. Selling pressure dominated the landscape as only the iShares Treasury Bond (TLT) showed the slightest tendency toward the positive side. The AMEX Pharmaceutical Index (DRG), PowerShares Clean Energy ETF (PBW), and streetTRACKS Gold (GLD) could be considered relative strength leaders in that they lost less than 1%.

The rest of the groups were much weaker with most losing more than 2%. The Oil Service HOLDRS (OIH) was the standout decliner as it dropped over 6%. It is not often we see the Russell 2000 (RUT) as one of the weakest groups, but that was the case today. This suggests, obviously, that small-cap stocks were hit especially hard.

I think the biggest takeaway from today's session relates to the daily charts of the Dow Jones Industrial Average, S&P 500, Nasdaq Composite, and Russell 2000. Here we see the indices are either at, or just below, the simple trendlines that connect the recent lows. This is an easy way to define an uptrend. Of course, easy usually means lacking in some way or another.

A break of the trendline would suggest the uptrend is slowing, but that doesn't necessarily mean it is over. In other words, a break suggests that momentum is slowing but that doesn't require a decline. We could see a slower uptrend or a consolidation. With that in mind, we head into next week with signs that the near-term momentum could slowing. If we do see a break, the "big" levels to eventually keep in mind are the November lows, but it will take some hard selling for those to be play. The action on Monday will determine if those trendlines remain intact. And that is where I will pick up next week. Have a great weekend.

Chart Courtesy of Thomson Financial

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Charts Courtesy of Thomson Financial