Is A Market Boost Around The Corner?
Going into the weekend,
some major players may
be sitting on the sidelines, but we have seen some late-afternoon rallies this
week and that has been with negative bias in the first half of trading.
With earnings season coming to a close and August
the second-worst month on the Indices, traders will now be looking forward to
the very important FOMC Meeting on August 13. There is now a certain sentiment
brewing that the Fed may cut interest rates once more before the end of the
year.
At the midpoint of trading the major indices are
at the lows of the day. The July Employment report was not favorable because the
consensus came in 54,000 less than expected. And buy interest looks to be
limited heading into the second half of trade.
The Dow Jones Industrial Average
(
$INDU |
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support is at 8267/8264. Volume is notably light on the session. Some of the Dow
players leading the decline are: Disney
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DIS |
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HPQ |
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(
GE |
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(
JPM |
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Depot
(
HD |
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INTC |
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The Nasdaq Composite
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$COMPQ |
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now erased all of the gains seen since last Friday. Some of the TV analysts
are eating crow after claiming all week that this was the turnaround. Support
on the intraday is at 1240.
The only two exciting sectors so far today are
Gold and Pharmaceuticals with the weaker sectors as follows, Banks, Retail,
Transports, Utilities and Semiconductors. The Phlx Semiconductor Sector Index
(
$SOX.X |
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factors that have plagued the SOX is earnings warnings and downgrades.
Now that
the SOX has broken below 300. The next support is at around 288/285 with
secondary support at 275. Some of the stocks taking a hit today are: Xilinx
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XLNX |
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(
AMD |
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(
MU |
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Maxim Integrated products
(
MXIM |
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PowerRating), Linear Technology
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LLTC |
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Teradyne
(
TER |
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LSCC |
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PowerRating).
There are very few stocks that are offering
setups, and many of the negative stocks have run away to the downside.
Quest Diagnostics (DGX)
is moving lower out of the counter trend rally we alerted on Thursday. DGX
is holding a
3-month
relative strength rank of 4 with a downtrending ADX of 51 from
TradingMarkets.com.
Nasdaq Breadth
Adv: 934 UpVol: 117034000
Dec: 2193 DnVol: 659656700
Net: -1259 Net: -542622700
NYSE Breadth
Adv: 821 UpVol: 17824915
Dec: 2314 DnVol: 75226760
Net: -1493 Net: -57401845