The market opened sharply lower but spent the rest of the day rallying after a stronger than expected economic report was released. The major indices ended mixed with the tech-sector draging the tech-heavy index into the red. Volume totals were reported higher on the NYSE and on the Nasdaq exchange which was expected since Friday's volume totals were exceptionally light. Decliners led advancers by nearly a 3-to-2 ratio on the NYSE and on the Nasdaq exchange. There were only 3 high-ranked companies from the CANSLIM.net Leaders List that made a new 52-week high and appeared on the CANSLIM.net BreakOuts Page, matching the 3 issues that appeared on the prior session.

The benchmark S&P 500 500 Index and small cap Russell 2000 indexes both managed to find support and rally near their respective 200-day moving average (DMA) lines on Monday which was an encouraging sign. However the small cap index ended in the red while the benchmark index ended with a small gain.  The tech-heavy Nasdaq composite found support near its shorter term 50 DMA line, which was also a healthy sign.  The Dow Jones Industrial Average is the only major average to close below both its shorter (50) and longer term (200) day moving average lines on Monday. From our perspective, the current rally is under pressure, since the action in leading stocks remains questionable (only 3 stocks today on the breakouts page!).

Turning to the economic front, the Institute of Supply Management (ISM) released its service index which was stronger than expected. The service index, also is also known as the non- manufacturing index and makes up nearly 90% of the economy, rose to 47 from 44 in May. Even though the reading was stronger than expected it was still below the boom/bust line of 50, indicating contraction. US services shrank at the slowest pace in nine months which was also an impressive feat. Looking forward, investors will begin digesting second quarter earnings and that will likely dictate the near term action for the major averages.

PICTURED: The Nasdaq Composite Index rallied after finding support near its 50 DMA line on Monday, but ended with a loss..

Have you seen the Q2 WEBCAST ON DEMAND ???
it aired June 24th...

Green Mountain Coffee Roasters (GMCR -$0.95 or -1.63% to $57.50) has been quietly consolidating above its 50-day moving average (DMA) line.  Its 50 DMA line is an important support level to watch.  A violation of it and the recent chart low ($51.65) would raise concerns and trigger technical sell signals. Losses negated its latest breakout from a "high-tight flag" type pattern.  Under the headline "Gap Down Today Indicative Of Distributional Pressure" an annotated graph illustrated as its late stage breakout failed amid "worrisome signs of distributional pressure" in the Featured Stock Update section on June 22nd (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. Do not be confused by the effect of the split on share prices, GMCR traded up an astonishing +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.