Markets started the week on the wrong foot Monday as the Nasdaq fell for the fourth consecutive Monday. It under performed the S&P 500 losing 1%.Both benchmarks made an attempt to comeback from morning lows but concluded making round trips to the lows of the session. Classic bear market action as the major averages sunk sunk in the final hour. Bull markets will go out on their highs and bear markets vica versa. The S&P 500 continued its spooning session with the 50 day SMA, and restlessness under the covers is not ideal. At least for the composite it is not. New buys should be proceeded with caution. Good candidates to start with are names that buck downtrends. Today names like DNKN HAIN BITA advanced. DNKN bucked the trend with a nice outside day on strong trade. BITA hailing from the strong internet group hit an all time high today. Volume was robust. It broke away from a symmetrical triangle formation last week above 17 and has kept on going. The important rails had bifurcating action today as CNI expanded on Fridays 102.84 cup with handle trigger. Volume was not as strong as you would like to see though today or Friday on the breakout. UNP KSU fell today. If that is not confusing enough there is economic data which has been coming in hot and cold. Last week auto sales fell as F actually beat views, but GM TM were unable to meet forecasts. But the ISM manufacturing index hit 2 year highs.
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