Research In Motion (RIMM) has been suffering a great deal over the past several years and turned lower once again in mid-February. It's latest plunge (in a series of sharp daily declines to occur this year) followed revenue news that fell below its own forecast. After lowering its outlook for the year, analysts at more than a dozen brokerages cut their price targets, while many others lowered their ratings on the company.
In economic news, the Conference Board announced on Friday that leading indicators rose more than anticipated in May to hit record highs. According to the Reuters/University of Michigan consumer confidence survey, however, consumer sentiment worsened by more than expected in June.
The economic data will be light to kick off the new week, but focus will then shift to housing and this week's FOMC interest rate announcement. Existing home sales kick off the reports on Tuesday, while the FOMC news follows on Wednesday.
Unless otherwise stated, the index action described in this article relates to the E-mini futures contracts for the respective indices. Actual index action may differ slightly in terms of pattern formation, although the market bias will remain the same.
Toni Hansen is president and co-founder of the Bastiat Group Inc., DBA Trading From Main Street. Toni is one of the most respected technical analysts and traders in the industry. She has been trading and educating new traders, money managers, professional market analysts and traders throughout the boom and bust of the last decade. She has worked in conjunction with some of the world's top financial exchanges. Learn more about Toni Hansen and the educational services she provides through her website at http://www.tonihansen.com.