Ringing 2 Bellwethers

Two bellwether stocks are breaking below important resistance that I'd like to point out before moving on to two stocks offering positive trading opportunities.

The first is 3M (MMM), which has been a solid performer since late 2011. After briefly retesting its 50-day moving average in late April, the stock made new highs in May then headed sideways in about a $3 range. This month the momentum and short-term trend indicators started moving in bearish divergence to price and today the stock is back under the 50-day average and the April highs. Money flow has fallen off dramatically this month and reflecting distribution. The positive volume bar last Friday is deceptive because, while that day's close was higher than the previous day's close, the Friday close was lower than the open. This is why it is much better to use indicators like accumulation/distribution or Chaikin Money Flow to monitor money moving in and out of a stock....333 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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