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Market Updates

Stock futures slide

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Stock futures are lower this morning, but they've recovered somewhat from earlier lows. Currently we're seeing S&P futures trade lower by 10 points, NASDAQ futures are off 34 and Dow futures are down 33 points.

Stock futures rose from their earlier lows when the durable goods orders showed an unexpected rise in orders of 2.9%. This came as welcomed news considering durable goods orders had plunged 5.5% back in April and had durable goods orders falling 3.8%. Today's 2.9% rise is well above analyst's expectations for a 0.1% decline.

Bullish Percent Updates

The bullish percent for the NASDAQ-100 ($BPNDX) from www.stockcharts.com shows that little has changed for this group of stocks in recent sessions. Current status is "bull alert" with 33% of the stocks in this group trading on a point and figure buy signal. The bullish percent for the NASDAQ Composite ($BPCOMPQ) remains in "bull correction" mode with 45% of the stocks having last given a point and figure buy signal on their chart. The S&P 500 Index continues to show weakness as further risk is removed from this market and yesterday's trading shows we've lost more stocks to sell signals as supply continues to exceed demand. The bullish percent for the S&P 500 ($BPSPX) fell another 2% to 54%. And last but not least the big boys on the NYSE Composite and the NYSE bullish percent ($BPNYA) from stockcharts.com shows that this index currently has 42% of its stocks on a point and figure buy signal and is very close to reversing lower into a column of O's. All in all, the defensive team should be on the field for the most part, with traders trying to identify and trade bullish only in those stocks that are breaking out of bases where capital being put to work has created a favorable supply/demand scenario.

In tonight's webinar on the bullish percent, we're going to help traders and investors better understand this indicator and how to use it to their advantage. We'll be talking about the above bullish percent indexes, which are more MARKET related and also take a look at various SECTOR bullish percents to try and figure out where some good trades might be looming (long and short). We hope to see some of you there as we think it will be an eye opening experience! You can find out more about tonight seminar at http://www.premierinvestorseminars.com.

Jeff Bailey
Senior Market Technician

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