A Similar Pattern

What appeared to be a rally day opening soon
turned,
as the high hopes were dashed within a half hour of the open. The
Dow Jones Industrial Average
(
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bottomed at 10220.00 and
is trading in a range between 10260 and 10235. Volume is quiet. The NYSE Adv/Dec
is 1303/1722.

U.S. stocks fell, led by Microsoft
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and General Electric
(
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. A report that showed the expansion in the
service economy is slowing fueled concern profit growth is too weak to warrant
gains in benchmark indexes.

Caterpillar
(
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and Minnesota Mining & Manufacturing
(
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dragged the Dow Jones Industrial Average to its lowest level in a month
after analysts said their shares may have climbed too far.

The Nasdaq
(
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has
followed a similar pattern as the Dow and has a trading range between 1781.80
and 1790.00. Volume is also quiet. The Nasdaq is Adv/Dec 1367/1917.

Many of the sectors are in the red today. One
group that is performing well today is homebuilding. Some of the stars in this
sector are Centex
(
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, Toll Brothers
(
TOL |
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, Pulte Homes
(
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,
Ryland Group
(
RYL |
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and MDC Holdings
(
MDC |
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.

In the futures market, the June S&P 500
futures
(
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have made a new 20-day low and hit the S2 Pivot Point at
1133.37. The June Dow Futures
(
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have hit their S2 Pivot Point at
10236. The June Nasdaq 100
(
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futures have also made a new 20-day
low.

Hollywood
Entertainment
(
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is trading
higher today with very strong volume. HLYW has a

TradingMarkets.com RS3 rating of 80

and an uptrending
ADX of 20.

The Software Holders ETF
(
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appears to
be headed for a re-test of the February low. SWH is holding a

3-month relative strength rank of 11
from TradingMarkets.com.

Wendy’s
(
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is pulling back after its
recent move higher. WEN carries a

3-month relative strength rank of 82
from TradingMarkets.com.

Abercrombie and Fitch
(
ANF |
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is pulling
back from its recent high. ANF is holding a

3-month relative strength rank of 80
from TradingMarkets.com.

Wet Seal
(
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is pulling back from
its high. WTSLA is holding a

3-month relative strength rank of 89
along with an uptrending
ADX of 30 from TradingMarkets.com.

Arch Coal
(
ACI |
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is trading higher
today after breaking out and closing above its resistance. Arch Coal has a

TradingMarkets.com RS3 rating of 84

and an uptrending
ADX
of 28.