Following The Biggest Four-Day Gain In Almost 70 Years…
US stocks dropped, ending the rally that gave
the Dow Jones Industrial Average
(
$INDU |
Quote |
Chart |
News |
PowerRating) its biggest four-day gain
in almost 70 years, after Intel
(
INTC |
Quote |
Chart |
News |
PowerRating) forecast falling sales.
Motorola
(
MOT |
Quote |
Chart |
News |
PowerRating) and Coca-Cola
(
KO |
Quote |
Chart |
News |
PowerRating) cut profit estimates,
Capital One Financial
(
COF |
Quote |
Chart |
News |
PowerRating) said loan losses are rising and J.P.
Morgan Chase & Co.
(
JPM |
Quote |
Chart |
News |
PowerRating) reported a plunge in earnings, putting a damper
on the optimism that triggered the rally last week. The Dow jumped more than 13% the past four sessions.
The minor bounce in the midday trade failed to
trigger much in the way of follow through. We are seeing prices slipping back
toward the lows in recent action. Looking at short-term action, it will take upticks back through the 1237 and 1245 levels for the Nasdaq Composite
(
$COMPQ |
Quote |
Chart |
News |
PowerRating).
A similar scenario for the Dow is at 8080, 8120 with S&P 500
(
$SPX.X |
Quote |
Chart |
News |
PowerRating)
barriers at 862 and 866.
The Semiconductors
(
$SOX.X |
Quote |
Chart |
News |
PowerRating) are
leading the techs lower. Now SOX is below the 20-day exponential moving average
posting an 8.6% intraday loss. Look for initial support at today’s intraday low
of 245 followed by an additional floor at the Monday low of 238. To the upside,
look for initial resistance now at 247.5 followed by additional overhead in the
area of 252. Sector components leading the move include:
(
MOT |
Quote |
Chart |
News |
PowerRating),
(
MU |
Quote |
Chart |
News |
PowerRating),
(
INTC |
Quote |
Chart |
News |
PowerRating),
(
AMD |
Quote |
Chart |
News |
PowerRating),
(
BRCM |
Quote |
Chart |
News |
PowerRating),
(
LSI |
Quote |
Chart |
News |
PowerRating).
Pharmaceutical Product Development
(
PPDI |
Quote |
Chart |
News |
PowerRating) is breaking out
above resistance with increasing volume. PPDI has a
TradingMarkets.com RS3 rating of 96.
Unitedhealth Group
(
UNH |
Quote |
Chart |
News |
PowerRating)
is breaking out to hit a 52-week high with increasing volume. UNH has a
TradingMarkets.com RS3 rating of 81.
Amylin Pharmaceuticals
(
AMLN |
Quote |
Chart |
News |
PowerRating) is
hitting a 52-week high. AMLN has a
TradingMarkets.com RS3 rating of 98.