Market Condition: Sellers Take Control

A much more negative global economic outlook from the World Bank induced a moment of clarity for investors as sellers took firm control of Monday’s stock market. Decliners outpaced advancers by ratios of 7.8 to 1 on the NYSE and 5.5 to 1 on the Nasdaq exchanges. All four of the major equity indices made new 5 day lows.

A quick scan of industry breadth reveals only two positive performers in the defensive areas of water utilities and telecom. The biggest losers for the day could be found in coal, steel, precious metals, basic materials, financials, banks, and energy stocks.

There are no changes in today’s trend analysis table. The short-term trend for the DIA, SPY,[ QQQQ]] and IWM all remain down. The QQQQ is the only index that is flashing a primary uptrend, but it is also losing its momentum.

Below is Monday’s market summary, market conditon and trend analysis, and support and resistance tables:

Market Summary

• The DIA closed down -2.33% @ $83.32 and $1.45 below its high and $0.00 above its low on volume -23.33% below its average volume. Daily PMI* is @ 0.00.
• The SPY closed down -3.00% @ 89.28 and $1.91 below its high and $0.03 above its low on volume +3.51% above its average volume . Daily PMI* is @ 1.55.
• The QQQQ closed down -2.99% @ 35.08 and $1.08 below its high and $0.06 above its low on volume -5.86% below its average volume. Daily PMI* is @ 5.26.
• The IWM closed down -3.55% @ 49.49 and $1.90 below its high and $0.09 above its low on volume +4.52% above its average volume. Daily PMI* is @ 4.52.

(*PMI measures and indicates strength of the underylying security’s trading range on a scale of 1-100.)

Market Condition and Trend Analysis

ETF Index	Market Condition	Short-Term	Intermediate	Primary
DIA	neutral	down	up	down
SPY	neutral	down	up	down
QQQQ	neutral	down	up	up
IWM	neutral	down	up	down

Technical Support & Resistance Levels for Tuesday, June-23-2009

Index	S3	S2	S1	Pivot	R1	R2	R3
DJ-30	7,995.57	8,199.85	8,269.43	8,404.13	8,473.71	8,608.41	8,812.69
SP-500	846.06	874.25	883.64	902.44	911.83	930.63	958.82
Nadaq	1,663.26	1,724.88	1,745.54	1,786.50	1,807.16	1,848.12	1,909.74
Russ-2k	463.66	481.15	486.98	498.64	504.47	516.13	533.62
VIX	27.87	29.62	30.68	31.37	32.43	33.12	34.87

Index ETF	Ticker	S3	S2	S1	Pivot	R1	R2	R3
DJ-30	DIA	80.90	82.35	82.84	83.80	84.29	85.25	86.70
SP-500	SPY	86.03	87.97	88.62	89.91	90.56	91.85	93.79
NASDAQ-100	QQQQ	33.14	34.28	34.68	35.42	35.82	36.56	37.70
R2K	IWM	45.36	47.80	48.65	50.24	51.09	52.68	55.12

Sector ETF	Ticker	S3	S2	S1	Pivot	R1	R2	R3
Consumer Discretion	XLY	21.69	22.14	22.29	22.59	22.74	23.04	23.49
Consumer Staples	XLP	22.38	22.59	22.69	22.80	22.90	23.01	23.22
Energy	XLE	43.71	45.50	46.12	47.29	47.91	49.08	50.87
Financials	XLF	10.29	10.92	11.14	11.55	11.77	12.18	12.81
Health Care	XLV	24.96	25.32	25.47	25.68	25.83	26.04	26.40
Industrials	XLI	20.27	20.95	21.20	21.63	21.88	22.31	22.99
Materials	XLB	23.08	24.07	24.41	25.06	25.40	26.05	27.04
Technology	XLK	16.98	17.37	17.52	17.76	17.91	18.15	18.54
Telecom	IYZ	17.24	17.42	17.52	17.60	17.70	17.78	17.96
Utilities	XLU	26.35	26.88	27.12	27.41	27.65	27.94	28.47

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Disclosure: Hillbent.com, Inc. or its affiliates may own positions in the equities mentioned in our reports. We do not receive any compensation from any of the companies covered in our reports.

Comments

[Mad Hedge F...:]

As they inevitably had to do. If you had any doubt, take a look at the insider selling figures for April and May. Corporate selling of stock has soared from $10 billion in April to $63 billion in May. Insider selling jumped from $1.9 billion to $2.2 billion, an enormous amount. Who were the suckers? Inflows to mutual funds and ETF’s ballooned from $7.0 billion to $10.3 billion. Retail investors are always the ones who ring the bell at the top of a move. That explains why dozens of technical indicators are rolling over. They’re are not signaling a crash, but they are not saying we are going up any time soon, either. If for whatever reason you can’t get out, sell short dated calls against all of your positions.

Jun 23 10:24 AM