The Dow Jones Industrial Average and S&P 500 Index both violated their respective 200 DMA lines while leadership (stocks hitting new highs) waned, putting pressure on the uptrend for the major averages (M criteria).

The major averages tumbled along with bonds and the U.S. dollar as investors weighed commentary by central bank members. In testimony before Congress this morning, Fed Chair Janet Yellen said the U.S. economy has mostly met the criteria needed to raise interest rates. Overseas, additional stimulus measures announced by President Mario Draghi following the ECB’s policy meeting fell well short of investor expectations.

On the data front, weekly jobless claims rose 9,000 to 269,000, essentially in line with consensus estimates. Separate reports showed the pace of service sector activity slowed more than expected in November, while factory orders increased 1.5% during October.

All ten sectors in the S&P 500 declined on Thursday. Chesapeake Energy Corp (CHK -11.78%) fell as the energy and healthcare sectors each lost more than 2% on the session, meanwhile consumer staples stocks relatively outperformed.

Treasuries were firmly lower with longer maturities experiencing their worst session since February. The 10-year note dropped a point and 7/32 to yield 2.32% while the 30-year bond fell 2 points and 30/32 to yield 3.06%. In commodities, NYMEX WTI crude rebounded 3% to $41.14/barrel. COMEX gold closed 0.7% higher at $1061.90/ounce. In FOREX, the dollar index fell more than 2% with the greenback plunging more than 3% against the euro.