Stocks pared losses on Thursday. The Dow fell 78 points to 16201. The S&P 500 retreated 6 points to 1932. The NASDAQ sank 18 points to 4734. The volume totals were reported higher than the prior session totals on the NYSE and on the Nasdaq exchange. Breadth was negative as decliners led advancers by a 3-2 margin on the NYSE and nearly 3-2 on the Nasdaq exchange. There were 8 stocks that made it onto the BreakOuts Page, matching the 8 high-ranked companies from the Leaders List that made a new 52-week high on the prior session. The total number of new 52-week lows expanded and solidly outnumbered new 52-week highs on the NYSE and on the Nasdaq exchange. There were losses for 5 of the 6 high-ranked companies currently on the Featured Stocks Page.

PICTURED: The benchmark S&P 500 Index finished in the upper third of its intra-day range on Thursday, a reassuring sign stocks found some support on the session. It met resistance before prior lows and its 50-day moving average (DMA) lines when rebounding, then slumped again on higher volume indicative of distributional pressure. Its MACD indicator remains positive, however, it remains well below its 200-day moving average line.

At least 2 of the 3 major indices should be trading above their respective 200-day moving average (DMA) lines in order for a market environment to be considered technically "healthy". A lot of recovery work must be done to get the indices back into healthy shape, and that improvement could require some considerable time and patience.

New buying efforts may only be considered in stocks meeting all key criteria of the fact-based investment system. Disciplined investors always limit losses by selling any stock that falls more than -7% from their purchase price.

The major averages stemmed declines as investors sought clarity on the Fed’s interest rate policy. Traders will be watching Janet Yellen as she speaks in Massachusetts. Economic data was mixed. Initial jobless claims rose less than expected last week. In August, durable goods orders fell 0.2%, better than estimated, while capital goods orders met projections of a 0.2% fall. Over the same period, annualized new home sales rose 5.7% over July’s figure.

Six of 10 S&P 500 sectors were in negative territory. Health care was the worst performer as Biogen (BIIB -1.79%) fell. Industrials were weighed down by Caterpillar’s (CAT -6.27%) decline. However, Lockheed Martin (LMT +0.98%) rose after revamping a share buyback program. In energy stocks, Transocean (RIG -4.8%) amid reports of being ensnared in Petrobras’ (PBR +2.48%) corruption scandal. Fiat (FCAU -4.24%) in sympathy with European carmakers.

Treasuries climbed but finished off session highs. The benchmark 10-year note rose 6/32 to yield 2.13%.

Commodities were mostly higher. WTI crude advanced 1.5% to $45.15/barrel. COMEX gold jaded 2% to $1153.80/ounce amid dollar weakness.