More Signs Of Strength…

In a month when volume is often lower and
trade activity not as vibrant, the major indices have moved above their
50-day moving averages.

The major averages have broken above their 50-day
simple moving averages: the Nasdaq Composite
(
$COMPQ |
Quote |
Chart |
News |
PowerRating)
rose above
its 50-day moving average at 1379; the Dow Jones Industrial Average
(
$INDU |
Quote |
Chart |
News |
PowerRating)

cleared its 50-day moving average at 8850; and the S&P 500
(
$SPX.X |
Quote |
Chart |
News |
PowerRating)

rose above the 50-day moving average at 932.

Volume is relatively light with the market
internals strong.

Stronger sectors on the day include:
Homebuilding, Retail, Prescription Benefit Management, Retail Software, Telecom,
Internet, Paper, Natural gas.

The weaker sectors on the day are: Biotech, Gold,
Oil Service, Airline.

Advanced Auto
Parts
(AAP)
is rallying from a 1,2,3 bottom on stronger volume for this time of the day.
After breaking above the 50% retracement (from the March low to the May high), it is now at the the 38.2% retracement.
Support is at 51.00. AAP is trading at 53.51 up 1.81.

Best Buy (BBY)
is moving in a counter trend rally on the daily chart.
BBY is holding a


3
-month
relative strength rank of 14
from TradingMarkets.com. BBY is trading at
23.86 up .41.

Pixar (PIXR)
is forming a


Slim Jim
on its intraday chart.
The stock is member of TM’s


Momentum List
, and is up 1.10 at 49.50.

Nasdaq Breadth

Adv: 1837 UpVol: 61830760

Dec: 1309 DnVol: 15849908

Net: +528 Net: +45980852

NYSE Breadth

Adv: 2059 UpVol: 58832670

Dec: 1081 DnVol: 11753993

Net: +978 Net: +47078677