Utilities and Healthcare are trying to hold up the market this week as Financial, Industrial, Basic Materials, and Technology have led the way down. There appears to be little optimism for the banks, given the worsening housing market and imminent end of QE2 (no more free money). Ciena (CIEN) and SINA (SINA) were big losers in Tech-land today. But it is beaten-down Technology that is rising in Sabrient’s SectorCast rankings. 

4 Stocks for an Odd Market

by David Brown, Chief Market Strategist, Sabrient Systems

As it turned out, the market was undaunted by the S&P negative outlook on U.S. debt. After the initial shock wore off, which took one down-day last Monday, the market bounced back and was quite positive for the rest of the week.

Earnings Season is the Key

by David Brown, Chief Market Strategist, Sabrient Systems

Stocks Buffeted by Macro Forces

by David Brown, Chief Market Strategist, Sabrient Systems

What does the market want, anyway? I know that's the name of this newsletter, but it's not an easy question to answer in recent months, and especially in the last couple of weeks.

Fed Walks Fine Line Between the Short-Term & Long-Term

by David Brown, Chief Market Strategist, Sabrient Systems

The abundance of news last week -- most with a positive slant -- finally boosted the S&P 500 out of the Channel of Gloom in which it was mired for so long. Not only did the S&P 500 break out of the channel, but it is now threatening the 200-day moving average, having surpassed the 50-day MA last week.

I hope you enjoyed the Fourth of July fireworks on Sunday, because there might not be much to celebrate on Wall Street this week.

Last week we warned that if most of the impending economic releases were negative, the market would likely fall worse than it did the week before.  And that’s what happened.  In fact, it dropped approximately twice as much as the week before. (It doesn’t feel so good to be right.)

Perhaps it was the new senator from Massachusetts who let the bears out, but I suppose it was a bit more than that. When the week began on Tuesday, after the Martin Luther King holiday, the bulls were grazing happily on GARP stocks, as contented as California cows.  But then somebody opened that gate, and the bears roared through and the bulls ran for cover.