Tuesday, June 8, 2010
The major averages traded between positive and negative territory after Fed Chairman Ben Bernanke said he does not expect a double dip recession in the US. Volume, an important indicator of institutional sponsorship, was higher than Monday’s levels. Advancers led decliners by a 23-to-15 ratio on the NYSE but trailed by an 11-to-16 ratio on the Nasdaq exchange. There were only 3 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 4 issues that appeared on the prior session. New 52-week lows outnumbered new 52-week highs on the NYSE and the Nasdaq exchange.
Major Averages Take Last Month’s Low:
The Dow Jones Industrial Average, Nasdaq composite, and small-cap Russell 2000 index all traded below their May 25, 2010 lows while the benchmark S&P 500 came within 2 points of last month’s low. So far, support has been tested and appears to have held but any further downside would suggest another leg lower may follow. The market reacted somewhat positively to Ben Bernanke’s comments that he does not believe a double dip recession will occur in the US but the price/volume action of the major averages in recent weeks disagrees with him.