Stocks Close Below 200 DMA Line
Tuesday, June 22, 2010
Market Commentary:
The major averages negatively reversed for a second straight day as the dollar rallied which put pressure on the current rally. It was disconcerting to see both the Dow Jones Industrial Average and the benchmark S&P 500 close below their respective 200 DMA lines only one week after the latest follow-through day (FTD) emerged. Volume totals were reported about even on the NYSE and slightly higher on the Nasdaq exchange compared to Monday’s levels which marked a distribution day and suggested large institutions are selling stocks. Decliners led advancers by over a 3-to-1 ratio on the NYSE and on the Nasdaq exchange. There were 12 high-ranked companies from the CANSLIM.net Leaders List that made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, lower than the 50 issues that appeared on the prior session. New 52-week highs outnumbered new 52-week lows on the NYSE but trailed on the Nasdaq exchange.
Existing Home Sales Fall & Oil Spill Drama Continues To Unfold:
Stocks opened higher but closed lower after the National Association of Realtors said sales of previously owned homes fell -2.2% last month and the euro fell for a second consecutive day. Elsewhere, the Obama administration said it would appeal a Louisiana judge’s verdict to overthrow the six-month ban on new deep-water drilling projects.