Today marked the end of a classic suckers rally, dead cat bounce.. whatever you want it to call it.  Just as we saw on Monday, the big fellas (institutions) sold into the rally toward the end of the day.  The only difference between today and yesterday is that the selling today was a bit more intense although not alarming.  The good news is that the indices are right at key support levels, so there isn’t reason to be overly concerned about this market falling apart at this point.  We’ll just have to see how the indices trade around key support of the 50 day moving average tomorrow.  At this point, it’s a bit too late to be getting into new short positions and a bit too early to initiate new longs, so sit tight for now.  If we get a big move down at the open tomorrow, I will be shopping a bit on the long side.

::: Major Indices Performance – The Numbers :::

(Note: volume averages are based on the average over the past 50 days)
Data as of 4:00EST – End of Day June 12th 2007

Distribution across all indices.

Nasdaq: DOWN .87% today with volume 5% ABOVE  average
Nasdaq ETF (QQQQ) DOWN .6%, volume 38% ABOVE average
Dow: DOWN .97%, with volume 3% ABOVE the average
Dow ETF (DIA): DOWN .98%, volume 82% ABOVE the average
S&P ETF (SPY): DOWN 1.09%, volume 115% ABOVE the average
Russell Small Cap ETF (IWM): DOWN 1.64%, volume 79% ABOVE the average

::: SelflInvestors Leading Stocks :::

The Self Investors Leading Stocks Index is comprised of stocks in the Breakout Tracker, which is a database of the fastest growing companies near a breakout or having already broken out of a base.  Leading stocks while down significantly did not get hit with any conviction.  Today saw constructive selling in leading stocks.

Summary:

* Decliners led Advancers 337 to 76
* Advancers were up an average of .91% today, with volume 14% ABOVE average
* Decliners were down an average of 1.72% with volume 7% BELOW average
* The total SI Leading Stocks Index was DOWN 1.24% today with volume 3% BELOW average

::: Where’s the Money Flowing :::

Many investing websites provide leading industries based on price performance alone. However, without accompanying volume levels, this can sometimes be misleading.  The only way that I know of to gauge industry/sector strength WITH volume levels is through the analysis of ETF’s.  A couple years ago this was not possible, but as more traders/investors use ETF’s they become a much better tool for gauging the health of the market and seeing where the money is flowing (or not flowing).  Using the proprietary SelfInvestors Demand Indicator score which measures price and volume movements, I’m able to quickly see which sectors/industries are seeing the greatest inflows of cash.  For a detailed look at how I go about gauging sector/industry strength please see the following post: http://selfinvestors.com/si/industry_tracking/

* Current Leading Sectors/Industries (over last 30 trading days): 
Internet, Agriculture, Technology, Aerospace/Defense, Telecom
                                              
* Current Lagging Sectors/Industries (over last 30 trading days): 
REIT, Real Estate, Realty, Gold Miners, Broadband

* Today’s Market Moving Industries/Sectors (UP):
None

* Today’s Market Moving Industries/Sectors (DOWN):
Nanotech, Real Estate, Gold Miners, Oil & Gas Services

::: Stocks :::

The stocks section will be an area where I highlight one stock selected from a group of stocks moving up with volume well above average and most likely breaking out of a base or consolidation. 

Very few stocks moved up with volume today – no stock of the day.