Markets began the week on a limp note with the leading Nasdaq continuing to exhibit signs of concern. It fell nearly 1% and the S&P 500 by .6%. Risk off theme remains with materials and energy falling 1.3%, the worst performers and the utilities the only one of the major ten S&P 500 groups to finish higher. Many have been talking about the smaller amount of stock holding this market up, and we agree the quadriceps of the benchmarks must be getting wobbly. Looking at the leading Nasdaq new 52 week highs versus lows the last 3 sessions has been sloppy. The last 3 sessions lows outnumbered highs with Thursdays tally coming in at 99/132, Friday 108/138 and Monday just 9 to 166. NYSE figures for last Thursday and Friday were even worse with 63/308 and 87/304 respectively. Peeking at individual names that are considered important for the economy one becomes concerned by the likes of LPX. The stock is also instrumental in giving us clues to the health of the housing market and it is lower 4 consecutive weeks with all CLOSING at lows for the weekly range down almost 20% in the process. PPG has given up 10% the last 2 weeks and this former best of breed basic material plays chart looks broken. It is down 9 straight sessions and now well below a prior good looking, taut double bottom base with a breakout trigger of 116.66 on 6/11. Remember breakouts that fail so rapidly following the move are red flags, the best ones will work out right away. Need confirmation on the employment situation. Look no further than RHI. One can make the case of a bearish head and shoulders pattern on the weekly. Last week was a convincing break below it and its 50 day SMA that was very reliable dating back a couple years.
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