The G8 will be meeting in Italy and a top agenda item will be the current economic stimulus, and what to do going forward. U.S. Mortgage applications rose in June and in Canada, housing sales for June were at record highs, most likely due to the very low interest rates. Google (GOOG) plans to develop an operating system based on its Chrome web browser. Google is up in the pre-market while Microsoft (MSFT) is trading down. Oil, gold and silver continue to pullback, negatively impacting the Canadian markets. German industrial output rose 3.7% in May, however, Eurozone GDP contracted by 4.9% in quarter one, on an annualized basis.
Futures this morning are marginally negative and the DAX is negative, indicating a negative open. The market bias indicators are showing a statistical bias for a bounce in the next one to five days. The market scans still show a bias to the downside, however, a review of the charts show that many stocks are near support levels. Also, we remain in a bottoming market condition, and it is common to see a bounce after a few strong down days. Overall market volume remains much lower than average, along with institutional participation.
| Index | Change | %Change | Level | Phase |
| TSX | -183.08 | -1.83% | 9844.35 | Warning |
| DJIA | -161.27 | -1.94% | 8163.60 | Bearish |
| Nasdaq | -41.23 | -2.31% | 1746.17 | Warning |
| SP 500 | -17.69 | -1.97% | 881.03 | Bearish |
| Russell 2000 | -9.78 | -1.98% | 484.25 | Warning |
| NYSE | -115.36 | -2.00% | 5654.64 | Warning |
Source: Telechart
Short Term market outlook:
Bias: Scans showing a negative bias
Energy: weak to moderate
Primary Trend: sideways
| Sector | Phase |
| Consumer Staples | Accumulation |
| Healthcare | Accumulation |
| Technology | Warning |
| Utilities | Recovery |
| Energy | Distribution |
| Financials | Distribution |
| Industrials | Distribution |
| Materials | Distribution |
| Consumer Discretionary | Bearish |
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