The stock market started the week in the red, after a downbeat report from China combined with concern about Greece, to create a bearish mood.

Monday turned out to be a disappointment for the stock market, even before the opening bell.  A disappointing trade balance report from China reinforced concerns about the global economic slowdown.  The battle between new Greek Prime Minister Alexis Tsipras and the nation’s troika of lenders continued, as investors began to worry that Italy and Spain would join Greece in refusing to continue compliance with the European Central Bank-imposed austerity regimen.  The stock market hates uncertainty – as one can see by Monday’s trading results.

The Dow Jones Industrial Average (NYSEARCA:DIA) lost 95 points on Monday, to close at 17,729 – for a 0.53 percent decline.  The S&P 500 (NYSEARCA:SPY) 500 retreated 0.42 percent to 2,046.

The Nasdaq 100 (NASDAQ:QQQ) declined 0.30 percent to 4,216.  The Russell 2000 (NYSEARCA:IWM) fell 0.80 percent to 1,195.

In other major markets, the United States Oil ETF (NYSEARCA:USO) jumped 1.54 percent to close at $19.77.

On London’s ICE Futures Europe Exchange, March futures for Brent crude oil rose 13 cents (0.22 percent) to $58.81 per barrel (NYSEARCA:BNO).

The price of April gold futures advanced $5.40 (0.44 percent) to $1,238.70 per ounce on the Chicago Mercantile Exchange (NYSEARCA:GLD).

The transportation sector completed the formation of a bearish, head-and-shoulders pattern on its chart during Monday’s session, as the Dow Jones Transportation Average sank 1.03 percent to 8,840 (NYSEARCA:IYT).

In Japan, risk aversion at the beginning of the week kept buying activity at a moderate level, despite yen weakness.  The yen weakened to 118.86 per dollar, during the last hour of Monday’s equities trading session on the Tokyo Stock Exchange, from its exchange rate of 117.37 per dollar, at the end of Friday’s equities trading session (NYSEARCA:FXY).  The Nikkei 225 Stock Average advanced 0.36 percent to 17,711 (NYSEARCA:EWJ).

In China, bad news was good news, as a disappointing trade balance report bolstered hopes for more aggressive economic stimulus efforts by the government.  China’s Customs Administration reported that on a year-over-year basis, the nation’s exports dropped 3.3 percent in January.  Economists were expecting to see a 6 percent increase .  Imports plunged 19.9 percent, compared with economists’ estimates of a 3 percent decline.  The Shanghai Composite Index advanced 0.62 percent to 3,095 (NYSEARCA:ASHR).  In Hong Kong, stimulus hopes failed to offset disappointment about the trade balance report.  The Hang Seng Index declined 0.64 percent to 24,521 (NYSEARCA:EWH).

In Europe, it was definitely a “risk off” day.  China’s report that its imports sank 19.9 percent last month (on a year-over-year basis) was a grim reminder of what European exporters (especially in the materials sector) had been experiencing in their trade with China.  Germany got a bit of sand kicked in its face by analysts from JPMorgan, who downgraded the nation’s DAX stock index from “overweight” to “neutral”.  In Greece, newly-elected Prime Minister Alexis Tsipras outlined his plans to do away with the ECB-imposed austerity nightmare, during a speech before the nation’s parliament on Sunday.  In Athens, the ASE Index plunged 4.75 percent to 765.22.   The  Euro STOXX 50 Index sank 1.48 percent to 3,347.  Its Relative Strength Index (RSI) fell from 64.11 to 56.77 (NYSEARCA:FEZ).

Technical indicators revealed that on Monday, the S&P 500 retreated 0.42 percent to 2,046, finding support at its 50-day moving average of 2,043.  Its Relative Strength Index (RSI) declined from 54.04 to 52.05.  The MACD is continuing to rise above the zero line, suggesting that the S&P could resume its advance during the immediate future.

On Monday, most sectors declined, except for the energy sector, which advanced  0.10 percent.  The utilities sector made the most significant decline, sinking 0.88 percent.

Consumer Discretionary:  -0.38%