The major averages got smacked and the dollar rallied after the World Bank said the recession will be deeper than previously forecast. As expected, volume totals were reported lower on both major US exchanges due to Friday's options expirations. Decliners trumped advancers by over a 6-to-1 ratio on the NYSE and by over a 5-to-1 ratio on the Nasdaq exchange. There were only 5 high-ranked companies from the CANSLIM.net Leaders List that made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, lower than the 12 issues that appeared on the prior session.  A further expansion in the new highs list would offer encouraging news for growth oriented investors. 

The stock market and a slew of commodities sold off after the World Bank cast a dark cloud over the current global economic recovery. The World Bank believes that unemployment and poverty will rise in developing nations and predicted the global economy will fall by -2.9% for the rest of the year. That is lower than the World Bank's prior report of a -1.7% contraction. The Bank believes that economic growth will return in 2010 at a +2% rate. That is also lower than last quarter's estimate of a +2.3% rate.

A separate report showed that corporate insiders (i.e. executives at publicly traded US companies), are taking advantage of the largest 16-week rally in 71 years and are selling shares at a very fast clip. Insider selling hit the fastest level since the bear market began in October 2007. The report showed that insiders of S&P 500 companies are net sellers for the past 14 consecutive weeks as the market raced higher. The data was compiled by www.InsiderScore.com.

Looking at the market, the current rally is under serious pressure and has all but ended as the Dow Jones Industrail Average and S&P 500 sliced and closed below both their 50-day and 200-day moving average (DMA) lines. The Nasdaq Composite Index remains the strongest of the major averages as it continues trading above both its 50 and 200 DMA lines. Leading stocks are beginning to falter which is another disconcerting sign. Nouriel Roubini, the now famous New York University economics professor who forecasted the current financial crisis, said the global economy may suffer another hit due to higher oil prices and widening budget deficits. This sent a slew of commodities lower as investors rush to cash out healthy multi month moves. The Reuters/Jefferies CRB Index which measures 19 raw materials lost ground.

PICTURED: The 945 area is formidable resistance for the benchmark S&P 500 Index.

Charts courtesy www.stockcharts.com

PICTURED: The Gold & Silver ($XAU -7.47%) violated its 50-day moving average line with a considerable loss on Monday. 

Green Mountain Coffee Roasters (GMCR -$3.46 or -6.12% to $53.07) gapped down today and volume was almost twice its daily average volume while falling toward its 50 DMA line -important support to watch. Gaps down are worrisome signs of distributional pressure.  It recently showed signs of institutional selling when volume spiked behind losses that negated its latest breakout from a "high-tight flag" type pattern.  It had vaulted to a fresh all-time high when it made its last appearance in the Featured Stock Update section on Monday, June 8th (read here). It barely claimed its all-time high with a small gain on light volume as its 3:2 stock split took effect on 6/09/09. GMCR traded up more than +144% since appearing with an annotated graph under the headline "It May Soon Be Time To Go Green" when featured in the January 2009 CANSLIM.net News (read here).

Color Codes Explained :
Y - Better candidates highlighted by our staff of experts.
G - Previously featured in past reports as yellow but may no longer be buyable under the guidelines.