By Robert W. Colby, Senior Analyst TraderPlanet.com

Failure to respond to “Good News”
Paulson’s plan for subprime rate freeze made no impression.

Major stock price indices broke 4-day uptrends.

Short-term technical momentum oscillators turned down following overbought readings for the short-term.

Major stock price indices had a half-way retracement of October-November losses last week. This proportion is sufficient for an upside correction.

Standard & Poor’s 500 index (1,472.43) reversed to the downside after failing to penetrate Potential Resistance at 1,492.14, which was the high of 11/14/2007.

NASDAQ Composite and NASDAQ 100 continued to underperform.

Small Caps continue under pressure.

Crude Oil and the CRB Index touched new 5-week lows.

Utilities Sector price moved up to a new high.

On Monday, major stock price indices gapped lower on the open, turned choppy, and closed lower than the open.

Volume fell significantly, suggesting uncertainty and hesitation.

The stock market failed to respond positively when Treasury Secretary Henry Paulson expressed confidence that a plan to help borrowers of subprime mortgages by freezing interest rates on troubled subprime home loans could be announced before the end of this week.

Breadth ended 19% net Bearish, with more Declining stocks than Advancing stocks on the NYSE.

Up-Down Volume finished the day 34% net Bearish, with greater Down Volume than Up Volume on the NYSE.

New Highs-New Lows on the NYSE ended at 43% net Bearish.

Spotlight on event stocks: Here is a stock screen I designed to pick out potential “event” stocks, both Bullish and Bearish. Sometimes, stocks with large changes in price and volume are revealed to be deal stocks, sooner or later, or are the subject of some other extraordinary events, positive or negative.

Bullish Stocks: Rising Price and Rising Volume
% Price Change, Symbol, Name

12.73% , ATVI , Activision Inc.
0.28% , XSD , Semiconductor SPDR, XSD
5.68% , LEN , Lennar Corp. (LEN)
3.47% , ECL , ECOLAB
4.34% , DYN , DYNEGY
2.41% , FPL , FPL GROUP INC
3.16% , MCHP , Microchip Technology Incorporated
6.79% , DISCA , Discovery Holding Co.
1.09% , UTH , Utilities H, UTH
3.05% , DE , DEERE & CO
5.00% , HES , AMERADA HESS
1.41% , LLL , L-3 COMMS HLDGS
4.75% , CTX , CENTEX
1.91% , ACS , AFFILIATED COMPUTER
2.25% , MON , MONSANTO
1.57% , VIA , VIACOM INC. (New)
1.31% , ADBE , ADOBE SYS
2.06% , NKE , NIKE STK B
2.89% , NOC , NORTHROP GRUMMAN
2.93% , BF.B , BROWN FORMAN STK B
1.50% , VIA.B , VIACOM STK B
1.01% , TEVA , Teva Pharmaceutical Industries Limited
0.18% , PBJ , Food & Beverage, PBJ
0.09% , PPA , Aerospace & Defense, PPA
1.54% , DD , DU PONT
1.10% , APC , ANADARKO PETRO
2.93% , BSX , BOSTON SCIENT
1.81% , FHN , FIRST TENNESSEE
3.97% , ESRX , EXPRESS SCRIPTS
2.65% , DLTR , Dollar Tree Stores Inc
0.81% , BJS , BJ SERVICES
1.15% , WMB , WILLIAMS
0.49% , VDE , Energy VIPERs, VDE
1.38% , PMTC.O , PARAMETRIC
1.89% , PEG , PUBL SVC ENTER
0.44% , PIV , Value Line Timeliness MidCap Gr, PIV
0.93% , ADSK , AUTODESK
1.14% , MRVL , MARVELL TECHNOLOGY
0.38% , XLE , Energy SPDR, XLE
1.20% , AET , AETNA
1.14% , WAT , WATERS
0.06% , PWC , LargeCap Blend Dynamic PS, PWC
0.16% , AFL , AFLAC

Bearish Stocks: Falling Price and Rising Volume
% Price Change, Symbol, Name

-0.95% , IGM , Technology GS, IGM
-1.91% , IGN , Networking, IGN
-0.50% , IXJ , Healthcare Global, IXJ
-0.84% , PEJ , Leisure & Entertainment, PEJ
-0.65% , RFV , Value MidCap S&P 400, RFV
-4.59% , HPC , HERCULES
-6.94% , RHI , ROBERT HALF
-0.83% , IYJ , Industrial LargeCap Blend DJ US, IYJ
-5.57% , DLX , DELUXE
-1.35% , PWY , Value SmallCap Dynamic PS, PWY
-2.81% , TUP , TUPPERWARE
-0.65% , DSV , Value Small Cap DJ, DSV
-2.39% , AMCC , APPLD MICRO CIRC
-4.10% , SNPS , Synopsys Inc
-4.94% , WYNN , Wynn Resorts L
-3.90% , FII , FED INVESTORS STK B
-0.43% , ITF , Japan LargeCap Blend TOPIX 150, ITF
-0.49% , ELV , Value Large Cap DJ, ELV
-1.04% , PZJ , SmallCap PS Zacks, PZJ
-0.13% , EWP , Spain Index, EWP
-1.16% , IPG , INTERPUBLIC GRP
-0.47% , PFM , Dividend Achievers PS, PFM
-1.79% , JCI , JOHNSON CONTROLS
-3.85% , AVP , AVON
-3.35% , AMAT , APPLIED MATERIAL
-0.58% , PEY , Dividend High Yield Equity PS, PEY
-1.55% , BBH , Biotech H, BBH
-0.65% , IYH , Healthcare DJ, IYH
-3.55% , GE , GENERAL ELECTRIC
-1.08% , VNQ , REIT VIPERs, VNQ
-0.64% , NY , Value LargeCap NYSE 100 iS, NY
-2.11% , ITT , ITT INDS
-2.50% , TNB , THOMAS & BETTS
-3.44% , ODP , OFFICE DEPOT
-1.91% , GENZ , GENZYME GEN
-1.72% , MCK , MCKESSON CORP
-1.37% , PETM , PETsMART Inc
-0.38% , IYK , Consumer Non-Cyclical, IYK
-0.29% , VOX , Telecom Services VIPERs, VOX
-0.97% , VIS , Industrials VIPERs, VIS
-1.03% , IGT , INTL GAME TECH
-0.36% , IEV , Europe 350 S&P Index, IEV
-0.38% , XLP , Consumer Staples SPDR, XLP
-1.03% , IJS , Value SmallCap S&P 600 B, IJS
-0.87% , VBR , Value SmallCap VIPERS, VBR
-0.20% , EWI , Italy Index, EWI
-0.54% , VHT , Health Care VIPERs, VHT
-3.54% , JBL , JABIL CIRCUIT
-5.66% , MHP , MCGRAW HILL
-0.43% , EWK , Belgium Index, EWK

Sectors: among the 9 major U.S. sectors, 2 rose, and 8 fell.
Major Sectors Ranked for the Day
% Price Change, Sector

0.98% Utilities
0.38% Energy
-0.38% Consumer Staples
-0.50% Materials
-0.52% Consumer Discretionary
-0.61% Technology
-0.63% Health Care
-0.81% Financial
-1.02% Industrial

Looking beyond the daily fluctuation to the major trends (listed in order of long-term relative strength):

Utilities (XLU) Bullish, Overweight. This defensive sector’s Relative Strength made a new 6-year high on 11/26/07. Price made a new 5-month high on 12/3/07. Utilities have improved significantly since their Relative Strength low on 9/28/07.

Energy (XLE) Bullish, Overweight. Relative Strength made new all-time high on 11/8/07. XLE made an all-time closing price high on 10/16/07. XLE has been strong compared to the S&P since 3/12/03.

Consumer Staples (XLP) Bullish, Overweight. This defensive sector’s price made a new all-time high on 12/3/07, and Relative Strength made a new 6-year high on 11/26/07.

Materials (XLB) Bullish, Overweight. The short-term turned down but the long-term trend is still up. Relative Strength made new all-time high on 11/8/07. Price made new all-time high on 10/29/07. The long-term Relative Strength trend has strongly outperformed since 9/27/2000.

Health Care (XLV) Bullish, Overweight. XLV price moved up to a new 6-month high on 12/3/07. Relative Strength moved up to a new 13-month high on 11/27/07.

Technology (XLK) Neutral, Market Weight. Relative Strength made a new 7-week low on 11/30/07. Still, long term, XLK has been relatively strong compared to the S&P since its low on 7/24/06.

Industrial (XLI) Neutral, Market Weight. Price and Relative Strength have been chopping sideways since 8/3/07. Longer-term trends appear Bullish.

Consumer Discretionary (XLY) Bearish, Underweight. On 11/27/07, price made a new 14-month low. On 11/21/07, the XLY/SPY Relative Strength ratio fell to its lowest level in 6 years. Relative Strength has been trending down since 1/5/05.

Financial (XLF) Bearish, Underweight. The oversold bounce in late November did not change the main trend. XLF price hit another new 2.5-year low on 11/26/07, and the XLF/SPY Relative Strength ratio fell to its lowest level in more than 7 years on 11/26/07. Relative Strength has been trending down since 2/20/07.

Foreign stock indices were mostly lower after making new highs in Relative Strength on 11/27/07. The EFA (the EAFE, international developed country stock markets, ex the U.S. and Canada) made a new price high on 10/31/07 and a new relative strength high on 11/27/07. EFA has substantially outperformed long term, since the Bull market started in 2002, and the secular trend is still Bullish. My Top 10 ETF Relative Strength Ranks have been nearly all Foreign for many months.

NASDAQ Composite and NASDAQ 100 continued to underperform in the wake of the Dell’s announcement of a cautious outlook. Trends in different time frames conflict. Longer term, NASDAQ outperformed from 8/8/06 to 11/7/07, including a new 6-year Relative strength high on 11/7/07 and a new price high on 10/31/07.

Growth Stock/Value Stock Relative Strength ratio has been in a neutral trend since 11/7/07. The long-term, the main trend for the Growth/Value ratio (IWF/IWD) has been rising since 8/8/06.

Small Cap Relative Strength fell to new lows on 12/3/07 and price broke its August low on 11/21/07. Small Caps substantially underperformed Large Caps since 4/19/06, and so the main long-term trend is Bearish for Small Caps.

January Crude Oil Futures fell to a new 5-week low but closed slightly higher. The short-term trend is still down. It is not clear if the 87.14 the low of 12/3/07 can function as support unless it is tested. The next Potential Support levels might be at previous resistance at 84.10, and at previous minor lows in the 78.25-78.35 zone. The U.S. OIL FUND ETF (AMEX: USO) is not a pure play on Crude Oil, although it generally moves in the same direction.

The Energy stock sector outperformed the USO since 11/26/07. Previously, over the 6 months from 5/30/07 to 11/26/07, XLE lagged oil the commodity.

December Gold Futures rose slightly after falling for 4 consecutive days. Gold appears to have entered a correction since its top at 848.00 on 11/7/07.

Silver’s main trend is Bearish compared to Gold. The iShares Silver Trust (AMEX: SLV) has been relatively weak since 12/7/06.

The Gold Miners ETF (GDX) has underperformed Gold Futures since 10/31/07.

Inflation expectations have been moving lower since 11/23/07. A new 4-week low suggests that a downside correction may be underway, based on the behavior of the ratio of two ETFs, TIP/IEF.

U.S. Treasury Bonds prices rose. Bonds made a new 28-month price high on 11/26/07. The long-term, iShares Lehman 20+ Year U.S. Treasury Bond ETF (AMEX: TLT) has been rising since 6/12/07. Bonds remain reactive to news about the credit crisis: the worse the credit crisis, the higher the Bond prices; the better the credit crisis, the lower the Bond prices.

The U.S. dollar reversed moderately. The decline was quite moderate. There appears to be a break in previous persistent selling pressure. Longer term, the dollar fell 19% from its high of 92.53 on 11/16/05 to its low of 74.65 on 11/23/07, moving it into “oversold”.

Daily Rankings of Major Global Markets, Ranked from Strongest to Weakest of the Day:

1.77% Oil Services
1.68% Malaysia
0.99% Dow Utilities
0.98% Utilities
0.72% 30Y T-Bond
0.66% Japanese Yen
0.53% British Pound
0.51% Oil
0.48% Chemicals
0.38% Energy
0.35% Natural Gas
0.31% Gold Mining
0.27% Swiss Franc
0.16% Commodity Related
0.16% Paper
0.15% Euro Index
0.14% Japan
0.12% Mexico
0.10% Semiconductors
0.08% Canadian Dollar
-0.03% Netherlands
-0.06% Brazil
-0.07% Australian Dollar
-0.13% Austria
-0.13% Spain
-0.15% Insurance
-0.20% Italy
-0.25% Dow Composite
-0.27% US Dollar Index
-0.34% Retailers
-0.34% Canada
-0.34% Germany
-0.35% AMEX Composite
-0.38% Consumer Staples
-0.40% S&P Mid Caps
-0.41% Australia
-0.43% Dow Industrial
-0.43% Belgium
-0.46% NYSE Composite
-0.47% Drugs
-0.49% France
-0.50% Materials
-0.52% Consumer Discretionary
-0.56% Russell 1000
-0.56% Wilshire 5000
-0.59% S&P 500
-0.59% Russell 3000
-0.59% United Kingdom
-0.61% Technology
-0.63% Health Care
-0.64% Health Care
-0.71% Hong Kong
-0.73% S&P 100
-0.75% South Korea
-0.81% Financial
-0.81% REITs
-0.84% Dow Transports
-0.85% Value Line
-0.87% Disk Drives
-0.88% Hardware
-0.88% Sweden
-0.90% Nasdaq Composite
-0.91% S&P Small Caps
-0.99% Switzerland
-1.02% Russell 2000
-1.02% Industrial
-1.03% Banks
-1.03% Health Care Products
-1.04% Nasdaq 100
-1.07% Computer Tech
-1.10% Hospitals
-1.17% Biotechs
-1.17% Broker Dealers
-1.18% Singapore
-1.51% Taiwan
-1.52% Internet
-1.56% DOT
-1.60% Network
-2.05% Airlines