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Newsletter, Members Click Here. To Subscribe - click Bull icon. June 30th: Bears did enough to contain bullish enthusiasm, and in some cases did enough to register a distribution day for some of the indices - although given the tight close relative to the previous day it is probably a toss up as to who would take the honors. For example, the NASDAQ closed down, but the NASDAQ 100 finished higher - handing a distribution day for the NASDAQ and an accumulation day for the NASDAQ 100. At this point I wouldn't be surprised to see bulls walk this down to last Wednesday's lows before bidding up the market. Monday or Tuesday are unlikely to see too much action - although the terrorist threat in London could see some downward pressure Monday (I can't remember if the first device in London was picked up during market hours and if this has been 'priced in' to the market) - watch Futures for leads. So far, the month of June has evolved into a broad sideways pattern which given the rise from March is behaving well inside a bullish consolidation. Since the failure of the June double bottom and (failed) test of the 50-day MA in the S&P I have kept with my bearish call for the Ticker Sense Blogger Sentiment Poll.

Nasdaq market internals [$NASI, $NAA50R and $BPCOMPQ] all fell to the extent the Nasdaq Percents of Stocks above their 50-day MA ($NAA50R) is once again below its 5-day EMA It is getting close to a year when I was last bullish on the market (July through September 06), but at least internals are heading in the right direction for a low risk buying opportunity. It will likely happen in the NYSE/S&P first but one will let the markets decide when it does.

Target hit: None

Stop hit: None

Newsletter, Members Click Here. To Subscribe - click Bull icon. June 28th: Markets dragged themselves to a flat close, first gaining on the release of Fed news, but drifting back soon afterwards. The good news for bulls was the hold of Wednesday's gains - the real Fed buying. Bears will look to the lack of upside follow through or associated volume to suggest the news wasn't as good as it could have otherwise been. My blog post today noted the bearish divergence for money flow in all of the indices suggesting Big Money is offloading to weak retail hands. The other point of note were the dojis observed in the NASDAQ, NASDAQ 100, Russell 2000, S&P and Dow - which may be seen as bearish in the short term, but may not necessarily be so (there could be another 2% in the tanks before another 1-2 week reversal kicks in). The more indices drag out this sideways pattern contained by May/June highs and June lows, the more likely a major top will come out of this. How will one know? When there is a weekly close below June lows - such an event will likely kick in the next decline leading to the an intermediate bottom, but this decline will not necessarily end the cyclical bull market. That will need a rally which fails to take out the prior high (and preferably stalls at the 50-day MA). But that is another days analysis. The next few days are unlikely to see too much happen given th July 4th holiday falls mid-week, next week.

Target hit: None

Stop hit: None

Newsletter, Members Click Here. To Subscribe - click Bull icon. June 27th: The bounce may have come a day early, the Fed are going to have something good up their sleeve to trigger a follow through similar to today. Volume disappointed and with the indices some distance from their 50-day MAs there is a risk the Fed decision could be met with 'disappointment' - even if the Fed decision is considered "good news". The NASDAQ opened just below channel support but closed in neutral territory, just above its 20-day MA. The NASDAQ 100 made a picture perfect bounce off its 50-day MA and also closed above its 20-day MA. The semiconductor index did likewise. The Russell 2000 bounced from a no-mans land and closed just below its 20-day MA. Unfortunately, the S&P failed to close over its 50-day MA - the only index not to do so. The Fed has a lot to live up to....

Nasdaq market internals [$NASI, $NAA50R and $BPCOMPQ] saw some early strength with a bullish cross of the 5-day MA for the Percentage of Nasdaq stocks above their 50-day MA ($NAA50R). The other two internals both declined.

Target hit: None

Stop hit: Some wild intraday action exited a few more positions. AFL was a Subscriber pick for March 15th and April 5th - in addition to been a Breakout for April 27th and May 31st. The former plays closed for a 12% gain and a 7% gain. The two Breakout plays closed for breakeven and a 2% loss. COR was a Breakout for June 21st, but it never got out of the gates. The position closed for a 7% loss. PFWD had a relatively wild intraday swing to knock the April 23rd Subscriber pick for 7% gain. The later June 5th Breakout play closed for a 6% loss. ICO was a Subscriber pick for May 30th. The play closed for a 6% loss even though it found support at the 50-day MA. TXI was a Subscriber pick for May 22nd but three days of heavier losses exited the position for a 6% loss.

Newsletter, Members Click Here. To Subscribe - click Bull icon. June 26th: Markets treaded water into the run up to the Fed decision on Thursday. Short term conditions favor a bounce given none of the indices followed through on two days of weakness. The Dow is perhaps best placed to capitalize on market strength given it sits right on the 50-day MA and is closest to June lows. The NASDAQ and NASDAQ 100 are at their 50-day MAs but haven't the benefit of June lows to fall back on (but may have rising channel support to lean on). The S&P is below the 50-day MA but close enough to it and June lows to suggest small gains would regain such support. The Russell 2000 similarly trades below its 50-day MA and has June lows to lend a hand. Given the Fed decision will be Thursday there is unlikely to be too much action on Wednesday.

Target hit: None

Stop hit: Another set of stop hits. MMG gave up June lows to hit its stop price. The June 18th Breakout closed for an 8% loss. GRA gave up a rising support line to close the June 18th Breakout play for an 8% loss. MCZ swept into its stop price to close the June 19th Subscriber play for a 10% loss and the earlier May 14th play for a 43% gain.

Newsletter, Members Click Here. To Subscribe - click Bull icon. June 25th: Another day of losses saw the markets drop to a number of support levels. For the NASDAQ there is rough upward channel assisted by the nearby 50-day MA (which received a positive test on Monday). The alternative is a megaphone pattern which have illustrated in the NASDAQ 100; in this case there would be a break of the 50-day MA, but support would not be far below. There were 'sell' triggers for both these indices in on-balance-volume which added further pressure to the overall picture, but the weaker selling for Monday could reflect a genuine lack of interest to sell, or apathy on the part of bulls. The semiconductor index was in a position to lead the NASDAQ and NASDAQ 100 higher, but it has created a bull trap following the failed break of 510 and closed Monday back at head-and-shoulder/double bottom neckline support (but is well placed to see some upside Tuesday).

Large caps [Dow and S&P] have issues of their own with a loss of the 50-day MA for the S&P with the Dow finishing at the 50-day MA. Again, both these indices experienced 'sell' triggers in on-balance-volume marking the return of distribution. The Russell 2000 made a second break of the 50-day MA inside the space of a month. The last break was followed by three days of gains - but technicals are significantly weaker this time around.

Not surprisingly, Nasdaq market internals [$NASI, $NAA50R and $BPCOMPQ] all weakened, but the Nasdaq Summation Index ($NASI) made a decisive break of its 4-month consolidation which favors another down leg for the NASDAQ.

Target hit: None

Stop hit: A number of stock plays hit their exit points. BYI was a Subscriber pick for April 24th and a Breakout for May 21st and June 22nd. The Subscriber pick closed for a 7% gain, the two Breakouts closed for a 7% gain and a 4% loss. LECO made a sharp reversal from a breakout to a breakdown in the space of 2 days. The June 22nd Breakout play closed for a 2% loss. The earlier June 1st Breakout closed for a 5% gain, while the earlier April 27th Subscriber pick closed for a 16% gain. CBST was a Subscriber pick for May 17th but failed to build up any momentum and instead retreated to its stop price for a 4% loss. GMO was a Subscriber pick for June 19th. The stock suffered two days of heavier selling to reverse its consolidation breakout for an 11% loss. JADE was a Subscriber pick for June 14th. It too lost near term support and the 50-day MA to close for a 5% loss. WIND was a Subscriber pick for June 1st and June 20th - the former play closed for a 3% gain, the latter for a 4% loss. WU was a Subscriber pick for March 13th. After trading in a Sideways period for this range it dropped below support and into its stop price for a 4% loss. NVT was a swing trade for June 22nd which broke south as a short play, but opened strong to hit its stop for a 2% loss.

Newsletter, Members Click Here. To Subscribe - click Bull icon. June 23rd: The semiconductor index tried to let down the NASDAQ and NASDAQ 100 lightly, but with the semis closing below 510 support there wasn't the demand necessary to prevent the tech averages from breaking gap support. Large caps [Dow and S&P] felt their own pain, falling back to the 50-day MAs. The S&P edged a break just below this average (by all of 3 points), but this could be easily reversed on Monday. However, neither Dow nor S&P can afford to lose much more without risking a more serious technical break. TraderMike talked about the important of June lows and if the 50-day MAs fail this is likely where support will be found. The Russell 2000 has done better in holding its 50-day MA, but it won't stand long at such support if other indices start breaking theirs. Technically, there were fresh MACD 'sell' triggers for the NASDAQ and NASDAQ 100 - running in line with their now 2-month bearish divergence in their MACD trigger lines. Large caps [Dow and S&P] have to contend with their own bearish divergences, along with a significantly larger one (6-month+) for the Russell 2000. Ironically, the weakest of the indices, the semiconductor index, doesn't have a MACD trigger line bearish divergence to contend with. With the exception of the Dow, all the aforementioned indices are trendless [ADX < 20] and given the rate of decline of the ADX for the Dow it too will soon be meandering in a 'trendless' environment. The next few weeks could see some scrappy action as a trading range develops, hemmed in by May-June High-Lows.

Nasdaq market internals [$NASI, $NAA50R and $BPCOMPQ] weakened in line with the NASDAQ and there is a chance the Nasdaq Summation Index ($NASI) has lost 4-month support, triggering a new downleg which would spell big trouble for the NASDAQ.

Target hit: None

Stop hit: JBX hit its third day of losses in a row to close the May 15th Subscriber pick for a 3% loss. ONXX has the look for a stock destined for the big gap void between $12.50 and $17.50. The May 14th Subscriber pick closed for an 8% loss. NVT was a Breakout for May 31st, but given the recent swing trade play for Subscribers, the Breakout play is closed for an 8% gain.

Newsletter, Members Click Here. To Subscribe - click Bull icon. June 21st: Markets got a nice boost after the semiconductor index blew away 510 resistance. These solid gains helped the NASDAQ and NASDAQ 100 gain some traction at gap support. Also working in their favor was the higher volume accumulation, favoring some form of upside follow through over the next few days. Large caps [Dow and S&P] were a little disappointing in this regard as their gains were not accompanied by heavier volume buying. However, both the S&P and Russell 2000 were able to make positive tests of the 50-day MA. Unfortunately, the S&P may have superceded the Russell 2000 in relative strength terms - which is more bearish picture for the market {Tech Indices > Large caps > Small caps}.

The other negative on the day was continued weakness in the Nasdaq market internals [$NASI, $NAA50R and $BPCOMPQ] - action which was contrary to the gains in the NASDAQ. These internals remain vulnerable to further selling which would favor more downside for the NASDAQ. The question is, which has the greatest influence on the NASDAQ - Nasdaq market internals [$NASI, $NAA50R and $BPCOMPQ] or the semiconductor index? The next few days will be telling.

Target hit: None

Stop hit: ARO was a Subscriber pick for May 11th, but after breaking through its 50-day MA it hit its stop for a 6% loss. CLF was a recent Subscriber pick for June 18th, but even with a reasonably good day following a picture perfect test of the 50-day MA it wasn't enough to prevent a stop hit for a 6% loss (if still holding I would set a stop on a closing break of the 50-day MA).

Newsletter, Members Click Here. To Subscribe - click Bull icon. June 20th: Those narrow ranges which have carried the market over the previous 3 days are no more. On an intraday level it looked to be a bull-trap - weakness on the open followed by an attempted rally - unfortunately for bulls the rally quickly died and the market never looked back. When the markets dropped support created by the last 3 days it was down quick and fast. In the end, it was a good swing trade - but where will it go next?

The NASDAQ is set for a move to the band of support between 2,525 and 2,534 and / or the 50-day MA. The NASDAQ 100 is looking at megaphone top support (close to the 50-day MA) with the 20-day MA as alternative support. The semiconductor index is clinging on to its double bottom breakout which should help the NASDAQ and NASDAQ 100 if it can hold. The Dow closed at mini-double bottom support on higher volume, but the S&P lost similar support to leave June lows (and/or the 50-day MA) as the next big test. A weak MACD trigger line re-asserted itself as the brief 'buy' for the S&P was no more and the Dow held to its late May 'sell'.

Nasdaq market internals [$NASI, $NAA50R and $BPCOMPQ] were mixed. The Nasdaq Percent of Stocks Above 50 Day Moving Average ($NAA50R) made another picture perfect test of bearish divergence resistance as it makes its way back towards March lows. The remaining two internals were relatively unchanged.

Target hit: None

Stop hit: ACF gapped into stop, closing the June 15th Breakout for a 7% loss. PRX broke below its prior range and into its June 14th stop to close the play for a 4% loss. The earlier May 21st Subscriber pick closed flat.

Newsletter, Members Click Here. To Subscribe - click Bull icon. June 19th: The last three days have seen relatively tight ranges which are good entry points on the break of support or resistance (the high/low range of the three days - stops placed on the reverse side). Best placed are the large caps [Dow and S&P] given prior bullish strength. The fresh MACD 'buy' trigger in the S&P and the soon-to-be 'buy' trigger in the Dow are additional bullish indicators - especially when such triggers occur well above the bullish zero line. The NASDAQ is wedged between 2,620 support and rising resistance connected to early and late May highs and could go either way. The NASDAQ 100 is in a similar situation. The Russell 2000 had combined bullish and bearish bias with the MACD trigger 'buy' at former broadening resistance.

Nasdaq market internals [$NASI, $NAA50R and $BPCOMPQ] all rose to strengthen their recent bottom - although this bottom has again occurred at a level more associated with overbought than oversold conditions. Buyer beware.

Target hit: None

Stop hit: None

Newsletter, Members Click Here. To Subscribe - click Bull icon. June 19th: The last three days have seen relatively tight ranges which are good entry points on the break of support or resistance (the high/low range of the three days - stops placed on the reverse side). Best placed are the large caps [Dow and S&P] given prior bullish strength. The fresh MACD 'buy' trigger in the S&P and the soon-to-be 'buy' trigger in the Dow are additional bullish indicators - especially when such triggers occur well above the bullish zero line. The NASDAQ is wedged between 2,620 support and rising resistance connected to early and late May highs and could go either way. The NASDAQ 100 is in a similar situation. The Russell 2000 had combined bullish and bearish bias with the MACD trigger 'buy' at former broadening resistance.

Nasdaq market internals [$NASI, $NAA50R and $BPCOMPQ] all rose to strengthen their recent bottom - although this bottom has again occurred at a level more associated with overbought than oversold conditions. Buyer beware.

Target hit: None

Stop hit: None

Newsletter, Members Click Here. To Subscribe - click Bull icon.June 18th: Markets digested Friday's big gap move on light volume - a good day for the bulls. There was also technical improvement with MACD trigger 'buy's for the NASDAQ 100 and NASDAQ, reversing recent 'sell' triggers for this indicator. One of the chief drivers for the tech averages - the semiconductor index - added another point to bring it to former rising channel resistance. There was also gains for the Nasdaq market internals [$NASI, $NAA50R and $BPCOMPQ] with the $NASI rising above its 5-day EMA while all supporting technicals of the $NAA50R are bullish after its MACD triggered a 'buy' signal to follow earlier bullish turns for stochastics, ultimate oscillator, and ADX. Large caps [Dow and S&P] have the edge, but tech averages [NASDAQ 100 and NASDAQ] are improving.

Target hit: PRST was a Subscriber pick for June 4th. It reached its target for a 16% gain.

Stop hit: None

June 16th: With positive inflation data (with respect to the consumer, less the important stuff the consumer pays money for, such as energy and food costs) the markets took a dive upwards, but there was relatively little impetus to push beyond the early morning gap. Why the markets (or the Fed) pay such heed to junk data is beyond me - I know rising energy and food costs hurt me and my family as a consumer - so I can assume it hurts other families like us too. But one can never argue with the market! Large caps [Dow and S&P] confirmed the mini-double bottoms created by Thursday's gains and remain the indices of choice for buyers. The big surge in volume was another tick in the bull column for these indices, although it may hurt the NASDAQ and NASDAQ 100 as such action combined with minimal gain after the open has more in common with bearish churning over solid 'buy-and-hold' buying. What may work in the tech markets favor was the confirmed head-and-shoulder reversal in the semiconductor index, supported by improving technical strength. If this can push beyond 510 it would generate a (very) long term buy signal (a consolidation which has lasted years). The Russell 2000 made it back to broadening wedge resistance - although the highs of the 'bull trap' at 856 is of greater significance, so further gains are likely favored for the index.

Where bulls have really won out this week was in the retracement of all the prior losses from early June - which had initially looked to be of something more serious than just a pullback. This may catch many shorts on the wrong side of the market, thus creating more buying. Because of this, I have opted for a bullish call in the Ticker Sense Blogger Sentiment Poll.

Nasdaq market internals [$NASI, $NAA50R and $BPCOMPQ] returned to winning ways with a bullish cross of the 5-day EMA for the $BPCOMPQ - following that of the $NAA50R. I have redrawn support of the consolidation triangle for the $NASI to account for the new uptick - thereby negating Thursday's break of support.

Target hit: None

Stop hit: None

Newsletter, Members Click Here. To Subscribe - click Bull icon. June 14th: There was a little bit of follow through to Wednesday's buying. Volume dropped a little from the day before which will likely lead to some flat to mild weakness for Friday. Markets are well positioned to challenge May highs. The NASDAQ and NASDAQ 100 were able to put some distance between the days close and the 20-day MA. The Dow, S&P, and Russell 2000 joined the tech averages by breaking through the 20-day MA. The semiconductor index managed a challenge of what was once strong resistance at 492, but was able to hold firm on the back of a fresh MACD 'buy' trigger.

Large caps [Dow and S&P] look best positioned of the indices to post additional gains as each created mini-double bottoms close to, or at the 50-day MAs. Given the lighter volume there is not the same drive as marked the March double bottom confirmation, but at least it is easy to mark support if long or thinking of buying. Unfortunately, none of the other indices are expressing a double bottom (bearish non-confirmation), which wasn't the case in March when double bottoms occurred across the board.

Nasdaq market internals [$NASI, $NAA50R and $BPCOMPQ] saw gains for all three indicators, but only the Nasdaq percent of stocks above the 50-day MA ($NAA50R) closed above its 5-day EMA. In contrast, there was a possible break of support in the Nasdaq Summation Index ($NASI) from yesterday which was followed by a 'sell' trigger in the MACD - very much different to what happened in the NASDAQ over the last couple of days. Avoid Tech and Small caps.

Target hit: None

Stop hit: OXGN was a Subscriber pick for April 23rd. Early gains did not follow through and the stock fell back into its stop for a 12% loss. FORR was a Subscriber pick for March 16th but the stock fell hard back to its stop for a 3% loss.

Newsletter, Members Click Here. To Subscribe - click Bull icon. June 13th: The Russell 2000 bounded back above its 50-day MA after Wednesday's break had threatened worse. The widespread bullishness was felt across the board with crosses above the 20-day MA in the NASDAQ and NASDAQ 100, but large caps [Dow and S&P] closed just a shade below this moving average. The semiconductor index was not to be out done and edged a close above its 20-day and 50-day MAs.

Nasdaq market internals [$NASI, $NAA50R and $BPCOMPQ] were mixed with a gain in the $NAA50R countered by losses for the $NASI and $BPCOMPQ.

Bulls dug their heels in and were nicely rewarded. Higher volume accumulation could see some upside follow through on Thursday.

Target hit: None

Stop hit: HGM was a Subscriber pick for May 15th but gapped below its 50-day MA to knock the play out for a 1% loss. OZN didn't last a day as it crashed through my marked support. The play closed for a 6% loss.

Newsletter, Members Click Here. To Subscribe - click Bull icon. June 12th: Well, bears will be feeling a little more confident after Tuesday's action. Monday saw a completion of the Fibonacci retracement after last week's sell off - which was then followed by today's selling. Worst hit was the Russell 2000 as it closed below the 50-day MA in what looks to be foreshadowing for the other indices. In addition, it has become the laggard in a more bearish alignment (for relative strength) in the markets {Tech > Large Caps > Small caps}. Volume climbed to register a third consecutive distribution day for the Dow, S&P, NASDAQ and NASDAQ 100. There was also a 'sell' trigger in on-balance-volume for the NASDAQ and Dow - and is very close to a matching signal in the NASDAQ 100. The NASDAQ, Dow and NASDAQ 100 are close to testing their 50-day MAs, while the S&P closed on its 50-day MA. But, given the action in the Russell 2000 it may so happen the indices will ease back to the 200-day MAs. Such an occurrence would likely be supported by oversold Nasdaq market internals [$NASI, $NAA50R and $BPCOMPQ] and provide a good long side entry for buyers.

Target hit: None

Stop hit: MSD has been drifting for the last few days. It has been a long-standing play since August 9th and October 4th and October 25th. The plays closed for a 2% gain, 1% loss and a 5% loss (excluding dividends). NL was a Subscriber pick for June 6th but undercut support to close for a 5% loss.

Newsletter, Members Click Here. To Subscribe - click Bull icon. June 10th: Friday's gains were the result of some deeply oversold short term conditions. Upward pressure should last another couple of days (maybe longer if there is volume to go with it) as the Fibonacci retracement pans out (Friday's close for many of the indices clipped the 38% level). Over a longer time frame (weeks to months) there remain major concerns with MACD trigger 'sell's and bearish divergences between the trigger lines and indices advances. Relative strength also changed as Tech indices took the leadership role from typical bull market leadership by small caps {Tech > Small caps > Large caps}. Bulls will look to the potential bear trap in the Dow as Thursday's break of channel support was countered by a return above this support level. Semiconductors saw the best of Friday's action with an impressive 3.1% gain - but closed at combined resistance of the 50-day and 20-day MAs which could see some softening. The semiconductor index has struggled to enjoy the gains of the likes of large caps [Dow and S&P] and non-semiconductor tech [NASDAQ and NASDAQ 100] which will likely result in added pressure to the latter indices. The Russell 2000 played a picture perfect bounce off the 50-day MA for those who were able to take advantage.

Nasdaq market internals [$NASI, $NAA50R and $BPCOMPQ] maintained a bearish tone with a minor gain for the $NAA50R (not enough to challenge the 5-day EMA), was paired with losses for the $BPCOMPQ and $NASI. Supporting technicals for these sentiment indicators are firmly bearish. Followers of the Ticker Sense Blogger Sentiment Poll will see I am bearish for the coming 30-days.

Target hit: None

Stop hit: ARII unfortunately clipped the stops at the lows of the day (although it enjoyed a 4.6% gain on Friday). The May 4th Subscriber pick closed for a 10% gain, the June 4th Breakout play closed for a 6% loss. FII broke from 5-month support to hit its June 1st Breakout stop price, closing for a 4% loss. The earlier January 29th and April 4th Breakout plays closed for a 6% gain and at breakeven. FXEN lunged down at the open (tick error???) to knock out is May 25th Breakout play for a 6% loss. SUNH was another stock to exit on an intraday swing. The May 14th Breakout play closed for a 9% loss, an earlier May 4th Subscriber pick closed for a 2% gain. CSU hit its stop at the very lows of the day. The March 21st Subscriber pick closed for an 8% loss.

Newsletter, Members Click Here. To Subscribe - click Bull icon. June 7th: Big break in the market, but short term one would have to favor a bounce. Trader Mike said it nicely: "On days like today I always get a kick out of looking at my blog’s referral logs to see what searches are bringing people to my site. This afternoon there were many people landing here searching for a list of inverse ETFs and for how to short sell. I can imagine many folks jumping on the bear bandwagon tomorrow and stepping right into a snapback rally. I’d be much more comfortable initiating shorts after that bounce comes. Hopefully those ’searchers’ won’t get chopped up with their new found bear ETFs and short selling knowledge."

There are a number of upcoming support levels to look too. For the NASDAQ there is a band of support running between 2,525 and 2,534, in addition to the 50-day MA currently at 2,532. The NASDAQ 100 has a little more leg run to go before it gets to its 50-day MA and key support at 1,848 - but both the NASDAQ and NASDAQ 100 saw fresh 'sell' triggers in their MACD's, in addition to a bearish cross in trend strength for both of these averages [-DI > +DI]. The Dow crashed through former channel support to create a series of down days not seen since February's sojourn downwards. A dead-cat-bounce, perhaps off early May reaction lows of 13,210, could see a rally to Fibonacci levels of 13,384 - 13,498 based on a low of 13,210. If this was to occur (and it is only an 'if'), it could lead to a larger head-and-shoulder reversal pattern with a downside target of 12,706 (close to key support of 12,796 defined by February highs). The S&P is in a slightly different position given it broke through early May lows, but is very close to its 50-day MA at 1,487 (it closed Thursday at 1,491). Like the Dow it suffered significant technical damage with a bearish cross in on-balance-volume and a gain in bearish trend strength [-DI > +DI]. Based on a bounce from its 50-day MA, Fibonacci levels would take it to 1,500 - 1,520 levels. The Russell 2000 may provide the best play off the open given it finished right on the 50-day MA (and would be a good omen for other indices trading near their 50-day MAs). Unfortunately, any bounce would likely be short-lived as the bull trap created this week should cause a sharp move back to former support - which in a broadening wedge is ever decreasing to the downside as time passes. Like other indices it experienced a MACD trigger 'sell', following from its reversal from the MACD bearish divergence. Finally, the semiconductor index ended the day only 4 points away from its 200-day MA and channel support - these should be good support and help the NASDAQ and NASDAQ 100 out a little.

Nasdaq market internals [$NASI, $NAA50R and $BPCOMPQ] took it on the chin once more. Following Wednesday's lead by the $NAA50R, the Nasdaq Bullish Percents ($BPCOMPQ) generated a bearish cross in the 5-day EMA - enough to redraw the bearish divergence relative to the Nasdaq. The Nasdaq Summation Index ($NASI) did likewise, creating a consolidation triangle in the process - who will win out? A complacent volatility suggests bears will enjoy the best of the summer's action.

Target hit: None

Stop hit: A number of stocks went on to hit their stops. CTCH featured a raised stop for Thursday and was hit to close that particular play for a 5% loss, but the earlier April 18th Subscriber play for a 9% gain and the May 21st Breakout play for a 4% loss. SUPG suffered its third day of losses in a row to exit the March 20th and May 30th Subscriber picks and April 4th Breakout play for a 3% gain and losses of 2% and 6% from oldest to most recent feature. SJM first featured to Subscribers for February 20th and again as Breakouts for March 29th, April 11th, May 4th and May 18th. The Subscriber pick closed for a 15% gain; the Breakout plays finished with a 6% gain, 3% gain, breakeven, and a 3% loss respectively. AYR dropped out of its consolidation to close out yesterday's Subscriber pick for a 2% loss but protected the profits of the earlier May 15th play for a 5% gain. GRRF was a Subscriber feature for May 24th, but it hit its stop price for an 11% loss. WYE gapped into its May 23rd stop price for a 3% loss. REP undercut its most recent reaction low, but could find support at the 50-day MA. The March 17th Subscriber pick closed with a 15% gain; the later May 14th and June 1st plays closed with a 4% gain and a 3% loss respectively. SIX was a Subscriber pick for June 6th which lasted less than a couple of days. The stock gapped into its stop for a 4% loss.

Newsletter, Members Click Here. To Subscribe - click Bull icon. June 6th: Last week's breakouts were consigned to the dustbin as markets fell for a second day. The Dow was the only index to register a distribution day which suggests a general lack of fear in the markets. In fact, previous two day sell offs such as the these have provided strong buying opportunities for the Dow and S&P which in the vast number of cases have taken out the prior high - Thursday could be one such buying opportunity. A greater level of skepticism exists for tech [NASDAQ and NASDAQ 100] and small caps [Russell 2000]. The NASDAQ and NASDAQ 100 have struggled to match the gains of large caps [Dow and S&P] and with the semiconductor index moving ever closer to channel support (and/or 200-day MA) it looks like tech weakness will continue. The Russell 2000 needs to be closely watched as its broadening wedge resistance breakout reversed into a bull trap - such moves are often followed by a rapid moves back to support and this may spell trouble for the Russell 2000 given the distance it would have to carry to reach wedge support (about a 5% drop from where it closed Wednesday). Also of note for the Russell 2000 was what looked to be a picture perfect reversal by the MACD trigger line off the long-standing bearish divergence. There was also increasing strength of the MACD trigger 'sell' in the Dow (and to a lesser extent, the S&P).

Nasdaq market internals [$NASI, $NAA50R and $BPCOMPQ] are slowly giving back recent gains. The breakout and bullish cross of the 5-day MA in the $NAA50R is no more and I have redrawn the bearish divergence for this sentiment indicator - the other internals have yet to follow suit, but both fell on Wednesday.

Target hit: None

Stop hit: ACGY was a Subscriber pick for March 28th and a Breakout for May 21st. The stock closed below the 50-day MA and into its most recent stop price to close the former play for a 5% gain and the latter for a 3% loss. WCRX clipped its stop intraday. The June 1st Subscriber pick closed for a 4% loss. KEM was a short-lived play. The stock hit its stop over the course of the day to close the position out for a 3% loss.

Newsletter, Members Click Here. To Subscribe - click Bull icon. June 5th: Selling volume picked up the pace but there was no break of support in any of the indices. Large caps [Dow and S&P] continued their steady advance with tech [NASDAQ and NASDAQ 100] and small caps [Russell 2000] jostling above prior April-May congestion. There were a couple of technical changes, most notably the reversal of the 1-day MACD trigger 'buy' in the S&P, but there was also a test of the strong bearish divergence in the MACD of the Russell 2000 - which looks set to mark another down leg given Tuesday's action. The semiconductor index enjoyed a reprieve of sorts as it held the 50-day MA (without managing a test of 492).

Nasdaq market internals [$NASI, $NAA50R and $BPCOMPQ] only saw a bearish cross of the 5-day EMA in the Nasdaq Percent of Stocks above the 50-day MA ($NAA50R), but its resistance break held.

Target hit: None

Stop hit: RAVN lost support if its bullish pennant. This closed the May 18th play Breakout play for a 9% gain.

Newsletter, Members Click Here. To Subscribe - click Bull icon.June 4th: Ho Hum! Small gains...yadda...yadda...yadda. Low volume..blah blah blah (there was an exception with higher volume accumulation for the NASDAQ 100). Points of note were the reversal of the MACD trigger 'sell' to a 'buy' for the S&P and the struggles of the semiconductor index at 492 / 20-day MA. The Russell 2000 probably enjoyed the best of the day's action with its sixth consecutive day of gains. Other than that there was little to add on the day.

Target hit: None

Stop hit: FRPT was a Subscriber pick for May 11th. Unfortunately, three days of losses pushed the stock down through its stop price for a 10% loss.

Newsletter, Members Click Here. To Subscribe - click Bull icon.June 3rd: A mixed bag of bullish action; large [Dow and S&P] and small [Russell 2000] caps perhaps enjoyed the best of it as tech averages [NASDAQ and NASDAQ 100] threw out further bearish signals with another 'shooting star' for the NASDAQ and bearish black candlestick for the NASDAQ 100. This potential bearish end to Friday for the NASDAQ 100 was countered somewhat by the fresh MACD trigger 'buy'. Also of concern - the semiconductor index struggled once again at former (strong) resistance of 492. Volume was tepid which may actually help the averages in the case of the NASDAQ and NASDAQ 100 - especially given the strong accumulation trends apparent in supporting on-balance-volume. The S&P also benefited with a break of resistance in this indicator - ending a flat (potentially bearish) period for on-balance-volume.

Nasdaq market internals [$NASI, $NAA50R and $BPCOMPQ] saw some major changes with a 6-week resistance breakout in the Nasdaq Composite Bullish Percent Index ($BPCOMPQ), helped by a 'buy' trigger in the MACD. There was a similar resistance break in the percentage of Nasdaq stocks above their 50-day MA ($NAA50R). The Nasdaq Summation Index ($NASI) enjoyed the best of its as all four supporting technical indicators are now bullish.

Because of some wavering in the technical strength of the S&P (which is getting less and less by the day - soon there will be a MACD trigger 'buy' to negate the early May 'sell' trigger) I have held to my bearish stance in the Ticker Sense Blogger Sentiment Poll.

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