This Sector Is Fueling The Nasdaq
With tomorrow being the
first anniversary of Sept. 11, there are issues other than trading on traders’
minds. Buying interest has been tempered amid new concerns about possible
terrorist attacks on US interests. Defensive issues
such as treasuries and gold that had been weaker have now perked up. With the US on
high alert for any possible danger, this is slowing down the
markets.
The Nasdaq Composite
(
$COMPQ |
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PowerRating)
traded as high as 1322.43 for the best levels of the day attempting to break above the 38.2% retracement
line 1319/1320 (Aug/Sep downtrend). The next resistance is around the 20-day
moving average 1336 and the 1340 50% retracement line. Intraday support is
around 1310 and 1305.
One of the sectors that has been helping the
Nasdaq today is the Phlx Semiconductor Index
(
$SOX.X |
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PowerRating). At the
second half of trading, the SOX
has backed off of its recent intraday highs, but is still trading positive.
Initial resistance is at 303/305 area with secondary resistance at the 38.2%
retracement level (310.53) drawn from the Aug/Sept downtrend. Another resistance
point is the 20-day moving average at 317.46. Intraday support is at around 296.
With secondary support at 292. The
resistance level for the Semiconductor HOLDRs
(
SMH |
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PowerRating) is at around
24.75 with support at 24.10 and 23.90.
The S&P 500
(
$SPX.X |
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PowerRating) is trading in a
choppy sideways pattern and has not come close to any major support or
resistance levels. Perhaps the second half of trading will bring something more
exciting.
Genetech
(
DNA |
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PowerRating) is rallying
higher after opening 20% down from yesterday’s close after the company announced
that a Phase III study of Avastin in relapsed metastatic breast cancer patients
did not meet its primary efficacy endpoint of progression-free survival. DNA is
now rallying off of the worst levels of the day. The
Biotech sector
(
$BTK.X |
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PowerRating) is now trading better than its early
declines.
Apollo
(
APOL |
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PowerRating) is hitting a 52-week
high with increasing volume. APOL has a
TradingMarkets.com RS3 rating of 94.
Sandisk
(
SNDK |
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PowerRating) is rallying from the
20-day moving average with increasing volume. Sandisk has a
TradingMarkets.com RS3 rating of 96.
Chiron
(
CHIR |
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PowerRating) is finding support
at a 38.2% retracement. CHIR holding a
3-month
relative strength rank of 84 from TradingMarkets.com.
Bob Evans Farms
(
BOBE |
Quote |
Chart |
News |
PowerRating) is
triggering back to the downside out of a counter trend rally. BOBE carries a
3-month
relative strength rank of 20 from TradingMarkets.com.
Nasdaq Breadth:
Adv: 1463 UpVol: 454769500
Dec: 1656 DnVol: 302209105
Net: -193 Net: +152560395
NYSE Breadth:
Adv: 1615 UpVol: 33422297
Dec: 1489 DnVol: 31996090
Net: +126 Net: +1426207