Sam Collins

Bulls Will Struggle Without Higher Volume

by Sam Collins   06/30/09

A close by the Nasdaq under yesterday's low of 1,825.03 would amount to a reversal since it would violate the 20-day moving average with the next target being the 50-day moving average at 1,758. And it would set up Nasdaq for a test of the May double-bottom at around 1,675.

The Dow and the S&P 500 are now moving into some areas of heavy overhead. And with the lowest volume of the year supporting the buyers, it is very unlikely that the bull will make much more headway.

But longer-term the trend is up, so pullbacks should be used by investors as an opportunity to pick up shares at better prices. Traders, however, should try to capture some quick trading gains from the short side of the market.

Today's Trading Landscape

Earnings to be reported include: Exfo Electro-Optical Engineering, Investors Real Estate, Park Electrochemical, Schnitzer Steel Industries, Sealy Corp. and Synnex Corp.

Economic reports due: ICSC Chain Store Sales Index for June 27, Redbook Retail Sales Index for June 27, April S&P/Case-Shiller Home Price Index, June Chicago PMI, June Conference Board Consumer Confidence and ABC/Washington Post Consumer Confidence for June 27.

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Sam Collins is a registered, fee-based portfolio manager who may be contacted at samailc@cox.net. You can also check out an archive of his most recent market outlooks.