Indices Spend Day Consolidating after Last Week's Rally

by an AdviceTrade.com publication

Market Recap: Futures wavered ahead of the open Tuesday as traders took a cautious stance after the long weekend, waiting to see if economic growth will return to the U.S.and whether concerns over Greek debt can be eased. The first session of the holiday-shortened week opened without a significant gap. The SPX traded within a four point range before setting the low of the day just after 11:00 am. The next three hours moved consistently higher as the index put the high of the session on the chart right at 2:00 pm. But the next thirty minutes were a sharp retreat as the lows of the day were tested before the index bounced. The last half hour saw selling as the index closed near the middle of the six point intraday trading range. Checking our Market Leaders board after Tuesday's session, our board shows most of our leaders closed lower, although tight trading ranges were the rule. Technology and the Russell 2000 small caps were the leaders while the Financials (XLF) and chip makers (SOX) showed weakness. It's interesting to see the SOX and Technology at opposite ends of the spectrum. SPX big winners were Abercrombie & Fitch Co (ANF) 3.89%, Salesforce.com Inc (CRM) 3.05%, and CF Industries Holdings Inc (CF) 2.56%. SPX big losers were Monster Worldwide Inc (MWW) -3.77%, Sears Holding Corp (SHLD) -3.41%, and Nike Inc Cl B (NKE) -3.05%. SPX five day big winners are MasterCard Inc (MA) 15.91%, Ak Steel Holding Corp (AKS) 14.48%, and Ebay Inc (EBAY) 13.69%. SPX five day big losers are Cablevision Systems Cl A (CVC) -23.72%, NVIDIA Corporation (NVDA) -6.14%, and Novellus Systems Inc (NVLS) -5.66%. New Ten Day Highs: ABT, ANF, AES, APD, AKS, AA, AGN, ALL, AEE, AEP, AXP, AIG, AMT, ABC, APC, APA, AIV, ADM, T, AN, AZO, AVB, BHI, BLL, BCR, BAX, BXP, BF/B, COG, CAM, COF, CAH, CFN, CELG, CTL, CHK, CVX, CME, CI, CLX, COH, KO, CCE, CTSH, CMCSA, COP, STZ, GLW, COST, CVH, DRI, DVA, DE, DELL, DNR, DVN, DO, DTV, DFS, DOV, DOW, DPS, DTE, DUK, DD, ROST, EMN, ECL, EP, ERTS, EMR, EOG, EQT, EQR, EXPE, EXPD, XOM, FISV, FLS, FLR, FMC, FTI, F, FO, BEN, FCX, GPS, GPC, GT, GWW, HAL, HOG, HAR, HAS, HSY, HES, HRL, DHI, HUM, ITW, IPG, IBM, INTU, ISRG, IRM, JNJ, JCI, JNPR, CLF, KMB, KIM, KFT, KR, LH, LEG, LXK, LTD, M, MAR, MI, MA, MAT, MJN, MCD, MHP, TAP, MON, MUR, NBR, NDAQ, NOV, NYT, NEM, NWSA, GAS, NKE, NBL, JWN, NU, NOC, NYX, OXY, OMC, OI, PCAR, BTU, PBCT, PXD, PNC, RL, PX, PCP, PGN, PLD, PSA, QCOM, PWR, STR, RSH, RRC, RDC, CRM, SNDK, SLB, SIAL, SPG, SNA, SO, SWN, SE, S, SBUX, HOT, SRCL, SUN, SYY, TROW, TGT, TDC, TSO, TMO, TIF, TWC, TWX, TJX, TRV, X, UTX, QLD, VTR, VRSN, VFC, VIA/B, VNO, DIS, WM, WAT, WPI, AMZN, AAPL, GOOG, ICE New Ten Day Lows: SAI, EK, ETR, HSP, NSM, JCP, TMK, VXX, SH Market Trend: Nine Sectors Report Looking at our Nine Sectors Report after Tuesday's action we can see that the tight trading range left our Nine Sectors unchanged. Our Nine Sectors signal remains a Sell. But market breadth continues to suggest that we see higher before we see significantly lower; any pullback here might be brief. Volume & Breadth Indicators For the SPX Index there were 161 components advancing and 309 components declining. On the NYSE 3,135 issues were traded with 1,465 advancing issues and 1,545 retreating issues, a ratio of 1.05 to one declining. There were 173 new highs and 7 new lows. The five day moving average of New Highs is 122 while the five day moving average of New Lows is 12 and the ten day moving average of Net Advancing is 779. The Net Advancing data indicates a bullish trend. Declining volume was higher at a ratio of 1.61 to one. The closing TRIN was 1.46 and the final tick was 198. The five day average of TRIN is .88 and the ten day average of TRIN is 1.1. The NYSE Composite Index lost -0.25% today while the SPX lost -0.13%. For the NYSE, relative to the previous 30 session average, volume was -9.26% below the average. Of the last 15 sessions 5 sessions ended with volume greater than the previous rolling 30 day average volume. Of the last 30 sessions, 15 sessions ended on a positive tick, 7 of last 10. For the SPX, the day's volume was 84.3% of the average daily volume for the last year. Volume was 87.6% of the last 10 day average and 90.9% of the previous day’s volume. Declining volume was greater than declining issues. The broad NYSE Composite Index was weaker than the SPX. Both somewhat bearish signal but until this market actually turns, the momentum remains upward. Total tick for the day was 21,000 and the average tick for the day was 14. There were 14 ticks greater than 600 and 24 ticks more extreme than -600. There were no ticks greater than 1000 and 2 ticks more extreme than -1000. The tick action suggests institutional distribution. Our tick chart for Tuesday is interesting in that it is entirely red. Ticks were exceptionally mild today but what we had were ticks suggesting that someone was intent on selling into strength. Tuesday’s volume was lighter than Friday's volume. Two interesting things to notice are the volume drop while the market was rising early in the session and then the volume spike with the index decline around 2:00 pm. Our Nightly Breadth Indicators remain bullish while the McClellan Oscillator has burned off some of the overbought signals. Moving Average and Support/Resistance Indicators: 88.4% of the SPX are above their five day moving average, 91.6% are above their 10 day average, 90.6% are above their 20 day moving average, 64.2% are above their 50 day moving average, and 69.8% are above their 200 day moving average. We had no significant moving average crossovers Tuesday. Our moving average Power Rating is 51 of a possible 100. Sectors on the Move: Sectors stronger than the SPX for Tuesday: - Basic Materials -- Outperformed the SPX by +25%. - Energy -- Outperformed the SPX by +73%. - Technology -- Outperformed the SPX by +28%. - Consumer Staples -- Outperformed the SPX by +9%. - Consumer Discretionary -- Outperformed the SPX by +57%. Sectors weaker than the SPX for Tuesday: - Financials -- Underperformed the SPX by -77%. - Industrials -- Underperformed the SPX by -44%. - Utilities -- Underperformed the SPX by -46%. - Health Care -- Underperformed the SPX by -15%. Wednesday, June 29 Economics 07:00 MBA Mortgage Index 07:30 Challenger Job Cuts 10:00 ISM Services 10:00 German Factory Orders 22:45 New Zealand GDP 23:30 Australian AIG PSI 23:50 Japanese Machine Orders Earnings Before: APWR, AMSC After: AIR, MILL, OCZ Before the open, outplacement firm Challenger, Gray & Christmas will issue its report on planned job cuts for June. The Institute for Supply Management will put out its June services index after trading begins. Economists are looking for the ISM services index to fall to 54.0 from 54.6 in May. Thank you for reading. Think on it, trade on it, and be well. -Mel Today's Trade Alerts

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