Editor's Note:

The stock market has extended its losses to five weeks in a row. More importantly the major stock market averages have broken their longer-term up trend dating back to the summer 2010 lows. It's not looking good if you're bullish on stocks. June is historically a weak month for the market. To make matters worse there is still a lot of uncertainty surrounding the end of QE2 even though investors have known about it for months. Further complicating things was another week of bearish economic data.

Almost nothing has changed from my comments a week ago. I remain hesitant to launch new bullish positions. We want to take a wait-and-see approach. Let the market come to you instead of chasing stocks. If you do open positions I would strongly consider you keep your position size small to limit your exposure. I am not adding any new trades tonight but we are adding two new candidates to the watch list.