Evening Briefing for July 8th

* MARKET THEMES FOR WEDNESDAY - S&P 500 Index breaks below the May/June lows, with continued weakness in 10-year Treasury yields and commodity prices. We continue to extend the number of stocks making new lows, with 288 20-day highs and 2429 20-day lows. Small cap stocks, banking, and housing shares are relatively weak; a market rally in the afternoon lifted energy and consumer stocks. A complete market wrap here.

* OVERSEAS/OVERNIGHT NUMBERS: 1 AM CT - Germany, manufacturing, CPI, foreign trade; 6 AM CT - UK, BoE interest rate decision; 7:15 AM CT - Canada, housing starts.

* WORTH READING:

-- More China trade conducted with yuan, rather than dollars;

-- States using stimulus money to stay afloat;

-- California's budgetary woes largely political;

-- The challenges of market timing signals;

-- Google's operating system challenge to Microsoft;

-- AXP sees no economic recovery;

-- Elliott Wave look at today's trade;

-- Reflections on the habits of trading success.
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