(Updated with commentary, stock prices.)
NEW YORK ( TheStreet) -- Stocks accelerated and closed significantly lower Wednesday as the dollar strengthened. The major indices tripped on technical levels, building on selling that began after new-home sales and mortgage applications fell.
Metals, energy and tech stocks were among those feeling the brunt of risk aversion, with the Nasdaq faring the worst of the major averages, down 56.48 points, or 2.7%, at 2059.61.
The Dow Jones Industrial Average fell 119.48 points, or 1.2%, to 9762.69, while the S&P 500 lost 20.78 points, or 2%, to 1042.63, a level that would make it negative for the month of October.
"Most of today's negative action has been dollar-related, and the tripping of technical levels that fired off another short trade or a sell order or something like that -- we're right in the zone where you would expect to trigger selling," says Marc Pado, U.S. market strategist at Cantor Fitzgerald. "The flip of the dollar trade is to unwind or cover your short in the dollar and sell commodities and the Russell 2000, and so this has produced a break of the uptrend line since the March lows." If you look at the groups that have been the strength of the rally -- energy, materials and tech, for instance -- you can see how they are affected by the reverse trade. "And really the leadership of the entire move has been technology, and they're getting just crushed today," he said. "What it amounts to is that breaking an uptrend line means that the momentum has shifted, or you've fully discounted the good news -- we started seeing that several days ago," he added. "We've seen about a 5% drop since the high last week, and