Be Aware Of Any New June Money Being Put To Work

(
SPY |
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PowerRating) down from Friday’s 120.05 close to 119.47 on the 11:10 a.m. ET bar.

Program activity subsided and the SPY worked its way back to 120.05 on very

light volume. Sell programs hit at 3:25 p.m., taking the SPY to a new intraday

low of 119.39 before closing at 119.48, right at the .618 119.54 zone. The SPX

(
$SPX.X |
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PowerRating) closed at 1191.50, -0.6%, losing 5.4 points on the program

selling in the last half-hour before closing at 1191.50. The average closing

price for the past six days is 1194.30 vs. the 1193.60 .618 retracement level to

the 1229.11 rally high from the 04/20/05 1136.15 low. All of the other major

indices have also been churning around their .618 retracement zones. The Dow

(
$INDU |
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PowerRating) was -0.7% yesterday to 10,467, while both the Nasdaq

(
$COMPQ |
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PowerRating), 2068, and
(
QQQQ |
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PowerRating), 38.08, were -0.3%. NYSE volume was 1.48

billion shares with a volume ratio of 40 and breadth neutral at +80, which

highlights the narrow end-of-month reallocation programs. The sectors were all

red, in line with the SPX, except the XBD, which was +0.8%. The highlight was

the long bond’s
(
TLT |
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PowerRating) +1.2% move. The XLU (utilities SPDR) closed unchanged

at 30.03 and is bumping up against the high end of a nine-week trading range

month extended to their +2.0 three-month standard deviation bands. The spread

for the QQQQ between the +2.0 and +3.0 band is 38.25 – 39.25, for the SMH it is

34.60 – 36, and the Nasdaq 2075 – 2125. The SPY closed at 119.48 and the spread

is 120.50 – 123, while the
(
DIA |
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PowerRating), which has lagged as expected, closed at

104.63 with the .618 level up at 106 and the spread of the +2.0 and +3.0 bands

money put to work the next few days which would push the extended levels even

higher, and then the prospect for a quick sharp downside air pocket is very

high, after which, the Generals will have a high incentive to mark-up their

major holdings into the six-month June-ending report card. I would imagine last