Indices Fail to Rally, Strong Stocks Breakout

DJIA + 3.50, +0.03% SP500 + 1.62, +0.13% NASDAQ Comp. - 5.74, -0.25% Russell 2000 - 0.28, -0.04% Oil closed at $140.00 down 21 cents The DJIA finished 1,288 points lower or down -10.19% for the month of June. Reportedly it was the worst June in over 75 years. Even though this was the biggest monthly drop this year for the DJIA, SPX and RUT, the Nasdaq Composite actually had a bigger monthly drop in January. Even though the DJIA is at a low for the year the SPX, Nasdaq and RUT are still above their January and March lows. Of course keep in mind any rallies that occur are still counter trend moves at this point. The DJIA formed a lower high and lower and a doji candle pattern. Certainly a pause in downward momentum but no upward momentum developed today. The SPX form a higher low and higher high and inverted hammer. Since Monday’s price action was barely above Friday’s there is still a lack of upward momentum in this index. The Nasdaq formed an inside day and closed at its low of the day. The only positive here is that it failed to create a lower low than Friday, but just barely. No sign of upward momentum here either. The RUT formed an outside day (a higher high and a lower low) and also closed at its low of the day about 2 ½ points below Friday’s low. No upward momentum here. Uptrending Stay focused on the up trend in these stocks. CLF had a support bounce and a resistance breakout in a three day bull flag pattern. BTU had a support bounce and a resistance breakout in a three day bull flag pattern. SCHN had a resistance breakout today following its support bounce in a bull flag on Friday. SCHN reports earnings Tuesday morning, July 1, before the open. Pay attention to trading after the news release. ANR had a resistance breakout with a breakout price target of 120. POT formed a spinning top after yesterday’s bullish engulfing pattern. In Consolidation FSLR had a support bounce. GS formed a spinning top and potential bullish harami pattern. Down Trending MER fell to a 52 week low. MS moved lower in its down trend. LEH fell to 52 week low and below its March 27 low. Monday’s Action Moving Up: CLF, FSLR, BTU, SCHN, IPI, MEE, ANR, DECK, MTL, AGU Moving Down: STRA, PCLN, MA, RIMM, CF, DRYS, MOS, AAPL, LEH, X, MON, IBM, AMZN, V, GRMN, SOHU, MER, EXPE, NKE, JASO Intermediate Term Market Trend: Down Short Term Market Trend: Down