Sam Collins

Market Showing Signs it May Head Lower

by Sam Collins   06/29/09

The NYSE traded 1.2 billion shares, with advancers ahead of decliners by 9-to-5. On Nasdaq, volume totaled 740 million shares, and advancers were ahead by almost 2-to-1.

For the week, the Dow fell 1.2%, the S&P 500 was down 0.3%, and Nasdaq rose 0.6%.

On Friday, August crude oil fell $1.07 to $69.16 a barrel over concerns that the recession might continue longer than expected. The Energy Select Sector SPDR (XLE) fell 32 cents to $47.89.

August gold rose $1.50 to end at $941 an ounce, as the Chinese continue to hint that a new world currency should replace the U.S. dollar as the world's reserve currency. The PHLX Gold/Silver Index (XAU) fell $2.32 to $143.80.

What the Markets Are Saying

While the markets are still trading within a 7% range between S&P 500 880 and 950, volume continues to shrink. The daily trading range is so small that the highs and lows of the day are now often made in the last 10 minutes of trading.

This sort of disinterest is usually the sign of a market that is rolling over and about to slide lower.

This is supported by the recent non-confirmations within the Dow averages, as well as the broad-based indices versus the narrow-based ones. And the false breakouts on the broad-based indices are fodder for the bears, as well.

But Nasdaq is another story.