Pulling Up The SOX
Following
through on the heels of upward momentum, stocks are higher
for the second day in a row after a gap opening. The move is
accompanied by heavy volume, a positive technical sign. There is also
bullish sentiment fueled by several
positive earnings reports and also by Federal Reserve Chairman Alan Greenspan
who told Congress this morning that the economy is beginning to recover. Greenspan
made the comments less than a week before the Federal Open Market Committee
meets in a two-day meeting to discuss the economic outlook and the prospects
for further rate cuts.
The Nasdaq
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$COMPQ |
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and touched its 1900 support level earlier in the week, and has now bounced off
of that support level and is rallying higher.
The Philadelphia Semiconductor index
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$SOX.X |
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is pushing higher today. Yesterday the SOX index hit and bounced off of its 500
support line. Among some of the stocks that are helping the semi index are
LSI Logic
(
LSI |
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PowerRating), KLA-Tenor
(
KLAC |
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EMC |
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Intel
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INTC |
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PowerRating).
Halliburton
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HAL |
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spark a rally in the Energy sector. Halliburton has bounced off of its $10
support level and is trading higher in today’s trade. The Philadelphia Oil
Service Index
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$OSX |
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(
OXH |
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both broken above their resistance line.
The Dow Jones Industrial Average
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$INDU |
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is rallying from its support line and has been close to hitting its 50-day
exponential moving average to the upside. The Dow is higher at 9812.88, up 81.92.
The March S&P 500 futures
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SPH2 |
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trading higher at 1136.50, up 7.30. The March S&Ps are rallying off of support and
have broken above their R1 pivot.
Sectors in Motion
Strongest Sectors — TheStreet.com Internet Index
(
$DOT.X |
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and Software
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$GSO.X |
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Weakest Sectors — Gold and Silver
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$XAU.X |
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Biotech
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$BTK.X |
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Autozone
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AZO |
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PowerRating) is breaking down from a low-volatility channel on the daily chart. AZO is currently down 1.20 to 63.25
and is carrying a
3-month relative strength rating of 28 from TradingMarkets.com.
Veritas
(
VRTS |
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PowerRating) appears poised to move
higher out of a pullback. VRTS is up 2.39 to 46.15.
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Stocks Crossing Above Their 50-Day Exponential Moving Average on Double Volume