By Robert W. Colby, Senior Analyst TraderPlanet.com

Normal bounce, but “tough bottom testing may lie ahead.”

Short-term stock market price and breadth momentum are in disarray and “need work”. The VIX “Fear Index” eased, but that does not mean that the decline is over. U.S. dollar has gained strength, short term.

The Advance-Decline balance was Bullish on both the NYSE and NASDAQ, following selling climax conditions on 6/7/07, when the NYSE A-D line plunged to a new five-week low, and the NASDAQ A-D line hit a new three-week low.

Trading volume fell, on both on the NYSE and NASDAQ, suggesting less power behind the buying than behind the previous selling.

Short-term momentum oscillators turned up somewhat but remain in disarray, suggesting tough bottom testing may lie ahead. When the general market price indexes were rising to new highs as recently as 6/4/07, oscillators such as MACD, RSI, and Stochastics were unable to rise to their peaks from late April-early May. That means that momentum oscillators were diverging Bearishly from price, thereby giving warning that the time for a consolidation or correction might be approaching.

Spotlight on event stocks: ThyssenKrupp was rumored to be interested in buying U.S. Steel, and National Semiconductor announced a stock buyback plan. Here is a stock screen I designed to pick out such potential “event” stocks. 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

14.70% , NSM , NATL SEMICONDUCT
7.99% , X , US STEEL CORP
2.46% , XSD , Semiconductor SPDR, XSD
1.23% , ELG , Growth Large Cap, ELG
1.12% , RFV , Value MidCap S&P 400, RFV
0.85% , IWC , Microcap Russell, IWC
1.55% , IGM , Technology GS, IGM
0.55% , EKH , Europe 2001 H, EKH
1.97% , IXN , Technology Global, IXN
4.59% , TXN , TEXAS INSTRUMENT
1.06% , VB , Small Cap VIPERs, VB
4.85% , ISIL , INTERSIL CORP
5.50% , FDO , FAMILY DLR STRS
4.01% , GNW , GENWORTH FINANCIAL (NYSE:GNW)
4.45% , GM , GENERAL MOTORS
3.12% , MBI , MBIA
2.01% , ADRA , Asia 50 BLDRS, ADRA
1.60% , TTH , Telecom H, TTH
4.41% , MXIM , MAXIM INTEGRATED
0.19% , PHW , Hardware & Electronics, PHW
1.69% , IYM , Basic Materials DJ US, IYM
4.35% , CAR , Avis Budget Group, Inc. (CAR)
2.80% , IGW , Semiconductor iS GS, IGW
1.04% , PTE , Telecommunications & Wireless, PTE
1.45% , VIS , Industrials VIPERs, VIS
1.04% , IWB , LargeCap 1000 R, IWB
1.49% , BBH , Biotech H, BBH
1.86% , CZN , CITIZENS COMMS STK B
0.36% , PXQ , Networking, PXQ
1.13% , JKD , LargeCap Blend Core iS M, JKD
3.59% , TYC , TYCO INTL
1.30% , PPA , Aerospace & Defense, PPA
0.78% , TMW , Wilshire 5000 ST TM, TMW
1.46% , IYT , Transportation Av DJ, IYT
0.90% , JKI , Value MidCap iS M, JKI
0.83% , RZV , Value SmallCap S&P 600, RZV
1.08% , RPV , Value S&P 500, RPV
2.34% , WOR , WORTHINGTON INDS
1.39% , IYJ , Industrial LargeCap Blend DJ US, IYJ
0.64% , PSJ , Software, PSJ
0.54% , PID , Dividend International, PID
2.69% , LUV , SOUTHWEST AIRLS
1.09% , EWC , Canada Index, EWC
2.68% , XME , Metals & Mining SPDR, XME
1.44% , TUP , TUPPERWARE
0.92% , NYC , LargeCap Blend NYSE Composite iS, NYC
2.39% , MCD , MCDONALDS
4.09% , Q , QWEST COMMUNICAT
1.16% , ISI , LargeCap Blend S&P 1500 iS, ISI
2.23% , CTAS , CINTAS

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

-2.46% , TLAB , TELLABS
-1.70% , IAU , Gold COMEX iS, IAU
-2.49% , SLV , Silver Trust iS, SLV
-2.39% , XMSR , XM Satellite R
-2.11% , NKE , NIKE STK B
-1.77% , DBC , Commodity Tracking, DBC
-0.76% , AGN , ALLERGAN