Market Wrap Up for June 11, 2012

The market started Monday with hopes for a possible confirmation rally that would validate the reversal off the lows from last Monday.  News over the weekend out of the EU that banks in Spain would receive bailout funds ignited pre-market futures.  There were hopes that this bailout news would calm world markets and lower short term borrowing costs for troubled countries in the Eurozone.

But not more than 30 minutes into today's session, the Nasdaq reversed those pre-market gains and turned negative.  The S&P 500 and DJIA soon followed.  It was all downhill from there, as the Nasdaq finished just off the lows of the session on increasing volume, creating another distribution day.

This remains a market prone to sudden swings given the news flow, and one where the majority of market participants should stay in cash until a proper confirmation day in the broad market indexes surfaces.  

Despite my overall short term skepticism of the current market environment, there are a number of stocks that are holding up well in spite of the weakness, so it's important to watch the market closely every day as we're only 5 days from the recent bottom, and a confirmation day can occur at any time.

Here are charts of the major U.S. indices.   Keep an open mind to all possibilities.

 Click on charts to enlarge view:

 

Here are a few charts of stocks holding up well to put on a watch list; not a recommendation to buy now.