The Market Direction…

>>>Market Condition Analysis>>> CIT reached an agreement with its bondholders to secure $3bn in badly needed capital in order to stave off bankruptcy filings.

In the energy sector, HAL posted better than expected earnings.

Volume was relatively unchanged on both exchanges: NYSE volume -6.41% below average and Nasdaq Composite volume -3.26% below average.

For Monday’s trading, price volume analysis was more or less divided between bullish accumulation @ +37% (price up & volume up) and +38% distribution (price up & volume down). As there was no clear dominant group today, nothing could be gleaned from today’s trading.

Equities, however, are beginning to exhibt signs of being overbought. @ 47% of stocks and @ 69% of equity industries are currently overbought and the pace of momentum is building.

Economic indicators still mixed

June’s Leading Economic Indicators (LEI) came in better than expected @ +0.7% vs. consensus estimates @ +0.5%. This marked the 3rd consecutive monthly gain for the LEI.

 

Large Cap bellweather stocks scheduled to report earnings on Tuesday are the following: Consumer Staples (KO; VFC); Retail-Wholesale (SBUX; SVU); Medical (BSX; DGX; FRX; GILD; MRK; SGP; SYK; UNH); Basic Materials (AKS; DD; FCX); Industrial Products (CAT; ITW; PTV); Construction (SHW); Conglomerates (UTX); Computer & Tech (AAPL; AMD; LLTC; LXK; QLGC; YHOO); Aerospace (LMT; PCP); Oil & Energy (BJS; BTU; NBR); Finance (BXP; CMA; HCBK; RF; SLM; STT; WU); Transportation (CHRW; LUV); and Business Services (RHI).

Market Summary

The DIA closed up +0.99% @ $88.33 and $0.21 below its high and $0.79 above its low. Volume  was +1% above average volume. Daily PMI* is @ 79.00 and weekly PMI* is @ 96.26.

The SPY closed up +1.00% @ 95.07 and $0.16 below its high and $0.94 above its low. Volume was -19% below average volume. Daily PMI* is @ 80.00 and weekly PMI* is @ 96.04.

The QQQQ closed up +0.96% @ 37.92 and $0.08 below its high and $0.36 above its low. Volume was -3.26% below average volume. Daily PMI* is @ 78.95 and weekly PMI* is @ 96.92.

The IWM closed up +1.23% @ 52.54 and $0.20 below its high and $0.51 above its low. Volume was -7% above average volume. Daily PMI* is @ 71.83 and weekly PMI* is @ 94.72.

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

Industry Summary–> Positive: 199; Negative: 10; Unchanged: 0

Leading Industries: resorts & casinos; silver; general entertainment; aluminum; broadcasting tv; regional airlines; internet service providers; reit-hotel/motel; farm & construction machinery; entertainment-diversified

Lagging Industries: meat products; medical practitioners; health care plans; insurance brokers; toy & hobby stores; medical laboratories & research; cigarettes; communication equipment; regional southwest banks; water utilities

Volume Movers

Stocks Moving Up on Surging Volume

• Large Caps: ETN; HAS; TXN; QLGC; MAT
  

• Mid Caps: AFFX; WERN; WL; PCX; ADTN
  

• Small Caps: ADPT; RUTH; PETS; POLL; GMCR
  

Stocks Moving Down on Surging Volume

• Large Caps: HAR; TSN;
  

• Mid Caps: ASBC; IDTI; HEW;
  

• Small Caps: CPF; ASTE; SAFM; SWSI
  

Market Trend Analysis

Market Momentum (% of Stocks Above Moving Averages)

Technical Support & Resistance Levels for July-20-2009

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