An Important Pattern Developing…
The markets are trading in a narrow range in the
first half of trading. On the Nasdaq
(
$COMPQ |
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PowerRating) it has been confined
to a tight 20 point range and the S&P 500
(
$SPX.X |
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in a 12 point range. Traders have not been that excited to be jumping in to bid
up stocks, given that some of the big players have made cautious comments.
A pattern is starting to be seen this week.
The stronger sectors of the past week are being sold off and sectors that
were weak are being picked up as bargains.
Some of the strongest sectors so far at the mid
session are: the Morgan Stanley Healthcare Payor Index
(
$HMO.X |
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PowerRating),
S&P Retail Index
(
$RLX.X |
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PowerRating), AMEX North American
Telecommunications Index
(
$XTC.X |
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PowerRating), and Forest & Paper Products
(
$FPP |
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PowerRating).
Anthem (ATH)
is breaking higher today above its 50% retracement line at 66.16 with unusually
high volume for this time of the day. Anthem has a
TradingMarkets.com RS3 Rating of 86 and an uptrending
ADX of 29. ATH is trading at 68.08 up 3.23.
The Biotech Holders ETF (BBH)
is beginning to move back to the downside out of a counter trend rally. The
ETF is down 1.48 at 74.20 and is carrying a
3-month relative strength rank of 15 from TradingMarkets.com.
Genentech (DNA)
is appearing vulnerable in a counter trend rally. DNA has been tracking a
similar route as the biotech index ($BTK.X)
and continuing to move downward over the past few months. The stock is down 0.80
to 31.10 and is holding a
3-month relative strength rank of 9 from TradingMarkets.com.
Nasdaq Breadth
Adv: 1192 UpVol: 2804365
Dec: 1937 DnVol: 6204703
Net: -745 Net: -3400338
NYSE Breadth
Adv: 1410 UpVol: 40404651
Dec: 1707 DnVol: 62578910
Net: -297 Net: -22174259