The day started very positively on the back of several positive economic reports. But the major indices started losing strength around 11 am ET and just continued to decline, closing near their lows for the day. SPX closed down $13 at $1950, barely higher than its low for the day at $1948.  RUT traded in a similar pattern, losing $12 to close at $1173. Trading volume popped up with 2.0 billion shares of the S&P 500 stocks trading today; the 50 dma = 1.9B. Trading volume rose 13% on the NYSE and increased 15% on NASDAQ.

This morning the Conference Board's measure of consumer confidence hit its highest level since January 2008 at 85.2. New home sales rose 18.6% in May to an annualized rate of 504k, up from 425k. The Case-Schiller housing price survey turned in a positive 10.8% increase for April, but that was a decline from March's +12.4%. This economic data bolstered the case for the bulls during this morning's trading session, but then it seemed like it slowly fell apart. I am inclined to think many traders were primed to take their profits, and ran for the exits as the market hit new highs. But several market analysts attributed the market's weakness to the continuing crisis in Iraq.

The question for tomorrow's open is whether the selling spreads.