(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
In other data, the Department of Commerce said durable goods orders increased 1%, in line with expectations, after a 2.6% decline the month prior. Adding pressure to the market, Goldman Sachs ( GS) reduced its third-quarter GDP forecast to 2.7% from 3.0%. Meanwhile, CIT Group ( CIT) announced it borrowed an additional $4.5 billion money from "a diverse group of lenders, including many of the company's bondholders" as it tries to restructure its debt and restore its business of lending to small and midsize companies. Shares added 10.4%. Broad, early declines followed losses overseas and some earnings angst as enterprise-software maker SAP ( SAP) said it expects services revenue to decline about 6% to 8% for the full year, sending shares down 9.9%. Conoco Phillips ( COP) -- down 2.8% -- said profit plummeted 71% in the third quarter, but it is increasing production as crude prices rise. In other news, so-called pay czar Kenneth Feinberg, who sliced total compensation for top executives at seven bailed-out firms last week, has now increased base salaries at the banks, automakers and insurers, The Wall Street Journal reported. Feinberg testified Wednesday before the House Oversight Committee on the compensation decisions he's made regarding the seven companies, which include Bank of America ( BAC), Citigroup ( C), AIG ( AIG), Chrysler, GM, Chrysler Financial and GMAC. Gold added 10 cents, to $1,030.50, while crude oil futures dropped $2.09 to $77.46. The latest data from the Energy Information Administration showed an uptick of 800,000 barrels in crude oil inventories, a 1.6 million barrel increase in gasoline inventories and a drawdown of 2.1 million barrels of distillates. Stocks overseas were widely lower. In Europe, the FTSE in London and Dax in Frankfurt fell 2.3% and 2.5%, respectively. In Asia, Hong Kong's Hang Seng and Japan's Nikkei lost 1.8% and 1.4%, respectively. -- Written by Elizabeth Trotta in New York.