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The trading day Monday started poorly, rallied impressively only to fall back on the release of the Reid (endorsed now by Obama) plan to raise the debt ceiling while cutting an imaginary $2.7 trillion from spending. It's the details that insult your intelligence. They include $1 trillion in "savings" from winding down wars (really?), $400 billion in interest savings (how?) and $1.2 trillion in unknown discretionary spending cuts. It also creates another bipartisan panel to find future savings. Didn't we just do that part?

Anyway, when investors looked under the hood they started selling stocks. The intent is to front-run the soon to be announced

Boehner plan

which will be a two-step process. We'll see how far that goes.

Meanwhile stocks, bonds, commodities and the dollar all ended the day lower as investor credit and debt worries intensify. But it's a Monday in July and we've had these types of Mondays before.

Volatility and two-way action will remain high throughout the week as earnings, economic data and the debt ceiling issue battle one another.

Stocks making news were Apple (AAPL) which briefly tagged $400 once again even though it appears Samsung new phone is outselling the iPhone for now. Also Google (GOOG) had a decent day as well.

U.S. stocks opened sharply lower then rallied most of the day until the Reid plan was introduced and the selling began with volume increasing on an ultra-light volume day. Breadth per the WSJ was quite negative.

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Continue to U.S. Sector, Stocks & Bond ETFs

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Continue to Currency & Commodity Market ETFs

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Continue to Overseas Sectors & ETFs

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The

NYMO

is a market breadth indicator that is based on the difference between the number of advancing and declining issues on the NYSE. When readings are +60/-60 markets are extended short-term.

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The

McClellan Summation Index

is a long-term version of the McClellan Oscillator. It is a market breadth indicator, and interpretation is similar to that of the McClellan Oscillator, except that it is more suited to major trends. I believe readings of +1000/-1000 reveal markets as much extended.

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The

VIX

is a widely used measure of market risk and is often referred to as the "investor fear gauge". Our own interpretation is highlighted in the chart above. The VIX measures the level of put option activity over a 30-day period. Greater buying of put options (protection) causes the index to rise.

Continue to Concluding Remarks

Dueling press conferences over dueling plans is the feature of markets currently. Theoretically there will be some sort of compromise between the two plans and then we can move on. Both plans may still result in a credit rating downgrade since they don't fix the debt problem period.

A comparison of the plans is

HERE

. The problem with the Reid plan is with phantom cuts which seem apparent. I'm not sure I like the Boehner plan either.

Tuesday we get the Case-Shiller Home Price Index, New Home Sales, and Consumer Confidence plus a boatload of earnings reports.

Let's see what happens.

Disclaimer: The ETF Digest maintains active ETF trading portfolio and a wide selection of ETFs away from portfolios in an independent listing. Current positions if any are embedded within charts. Our Lazy & Hedged Lazy Portfolios maintain the follow positions: VT, MGV, BND, BSV, VGT, VWO, VNO, IAU, DJCI, DJP, VMBS, VIG, ILF, EWA, IEV, EWC, EWJ, EWG, EWU, BWD, GXG, THD, AFK, BRAQ, CHIQ, TUR, & VNM.

The charts and comments are only the author's view of market activity and aren't recommendations to buy or sell any security.  Market sectors and related ETFs are selected based on his opinion as to their importance in providing the viewer a comprehensive summary of market conditions for the featured period.  Chart annotations aren't predictive of any future market action rather they only demonstrate the author's opinion as to a range of possibilities going forward. More detailed information, including actionable alerts, are available to subscribers at

www.etfdigest.com

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This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

Dave Fry is founder and publisher of

ETF Digest

, Dave's Daily blog and the best-selling book author of

Create Your Own ETF Hedge Fund, A DIY Strategy for Private Wealth Management

, published by Wiley Finance in 2008. A detailed bio is here:

Dave Fry.