The major averages opened lower as the dollar strengthened for the fifth consecutive session. Some of Tuesday's headlines which led investors to question the ongoing recovery are: German industrial production unexpectedly fell, several credit-rating companies highlighted the risk of huge government deficits, and Dubai World's Nakheel PJSC said it lost $3.65 billion. Volume, an important indicator of institutional sponsorship, was higher than Monday's levels on both major exchanges, making it another distribution day for the major averages. Decliners led advancers by more than a 2-to-1 ratio on the NYSE and on the Nasdaq exchange. There were 18 high-ranked companies from the CANSLIM.net Leaders List that made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, less than the total of 29 issues that appeared on the prior session. New 52-week highs outnumbered new 52-week lows on the NYSE and on the Nasdaq exchange.

Downgrades: The major averages gapped down at the open after Fitch Ratings downgraded the nation's credit. Moody's Investors Service said deteriorating public finances in the US and U.K. may "test the Aaa boundaries." Fitch Ratings cut Greece down to a BBB+ rating on Tuesday which is the third-lowest investment grade. Meanwhile, Standard & Poor's put Greece's A- rating on watch for a possible downgrade. Moody's, another popular rating agency, said the US and UK have "resilient" Aaa ratings while Canada, Germany and France's ratings are "resistant."

Economic News: Overseas, Japan's government supported 7.2 trillion yen ($81 billion) stimulus package to help their economic recovery. In Europe, German industrial output slid -1.8% in October led by a drop in production of energy and investment goods. This was lower than the average estimate for a +1% percent gain, according a Bloomberg.com.  Nakheel, the Dubai World-owned property developer seeking to renegotiate its debt, said that it had a first-half loss of 13.4 billion dirhams ($3.65 billion) due to lower revenue. A spokesman for Dubai World, Nakheel's parent, declined to comment on the write down. The weaker-than-expected economic news coupled with the multi-billion dollar loss from Nakheel sent the US dollar higher and a host of dollar denominated assets lower. Crude oil slid for a fifth consecutive day and gold continued falling from its all-time high of last Thursday. 

PICTURED: The Dow Jones Industrial Average is consolidating above its 50-day moving average and an upward trendline.  Any subsequent violations would raise concerns, meanwhile the current rally remains intact.

Charts courtesy www.stockcharts.com

PICTURED 1: The Bank Index ($BKX -0.07%) recently encountered resistance at its 50-day moving average (DMA) line.

Salesforce.com, Inc. (CRM -$1.73 or -2.63% to $64.14) gapped down today for a small loss on average volume, still hovering just -5% from its 52 week high. It has been recently consolidating above important support at its 50-day moving average (DMA) line and an upward trendline. It still has not formed a sound new base, yet it has held its ground since recent distributional pressure raised concerns. It has not spent a lot of time basing since its big gap up in August. Patience may allow it to form a sound new base and offer disciplined investors another idea entry point.  Meanwhile, its 50 DMA line and upward trendline connecting prior chart lows are initial chart support levels to watch.  Violations could trigger technical sell signals and raise more serious concerns. Not long ago it found prompt support at its 50-day moving average (DMA) line then rallied to a new 52-week high. 

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