Market longer term looks OK; short term ?
The market experienced more weakness last week, but at the same time hasn’t (at least so far) broken down. Overall its behavior since the early June highs suggests consolidative – rather than topping – action from an intermediate-to-longer-term perspective. A very mixed current trend picture however is providing few clues as to whether the next move in the short term is likely to be higher or lower.
Key downside support remains at about 1460 and 1490 for the S&P 500, 2500 and 2540 for the Nasdaq, 860-865 for the Russell 3000, and about 13,200-13,250 for the DJIA. Upside resistance remains at the recent highs – about 1540 for the S&P 500; 896 for the Russell 3000; 2640 and 2680 for the Nasdaq; and 13,700 for the DJIA.
New positions
No new positions this week.
Watchlists
Stocks of interest showing up on this week’s “upside strength” scans include Alpha Natural Resources (ANR), Andrew Corp. (ANDW), Biogen Idec (BIIB), Celanese (CE), Commerce Bancorp (CBH), Computer Sciences Corp. (CSC), Conagra (CAG), Constellation Brands (STZ), Costco (COST), Cytec Industries (CYT), General Motors (GM), Methode Electronics (METH), Northrup Grumman (NOC), Olin Corp. (OLN), Rohm & Haas (ROH), Standard Microsystems (SMSC), Timken Company (TKR), and Tupperware (TUP).
New “oversold” stocks of interest this week include Archer Daniels Midland (ADM), D.R. Horton (DHI), First Bancorp (FBP), KB Home (KBH), McCormick & Co. (MKC), and U.S. Bancorp (USB).
