Sectors Boosting The Nasdaq
The Dow Jones Industrial Average
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$INDU |
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moved cautiously at the beginning of today’s session. The Dow 30 opened
right around yesterday’s close of 9819. It then channeled sideways until about
10:00 AM EST when some economic reports were released.
The Consumer Confidence
index slipped to 108.8 in April from 110.2 in March; this was actually a bit
better than the 107.5 consensus and consistent with the slight drop in the
Michigan consumer index. The Chicago PMI fell to 54.7% in April, just a bit
below the 55.0% consensus. This did not detour traders because the news was not
that unexpected. If anything, it was good. The market took off and didn’t look
back. By 1:00 PM EST the Dow was up over 170.00 points, trading at 9992.82. The
market internals are positive.
The Nasdaq
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$COMPQ |
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next resistance level is around 1697/1700. Helping the Nasdaq move higher today
is the AMEX Biotech Index
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$BTK.X |
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Care Index
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$HMO.X |
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$SOX.X |
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In the semis,
(
KLAC |
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(
NVLS |
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(
AMAT |
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200-day EMA zone, along with
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MCHP |
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(
SMH |
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are at the bottom of their six-month trading range,
are all in positive
territory. For more on this, read
Kevin Haggerty’s View’s From The Trading Desk.
June gold
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GCM2 |
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lower today due to profit-taking. Support is at $305.00 an ounce. June Gold
affects the movement of the PHLX Gold & Silver Index
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$XAU.X |
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some of the gold mining stocks, such as Anglogold
(
AU |
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ABX |
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Newmont Mining
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NEM |
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PDG |
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lower today.
Cigna
(
CI |
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hit a 52-week high
and is trying to take out the $110.00 level which it has attempted twice
before. Third time could be a charm. You may want to put this one on your list
for a continuation entry on Wednesday. Also, check out Allstate
(
ALL |
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ALL
is in a nice uptrend and is currently trying to bounce off the 20-MA.
Willis Group Holding
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WSH |
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is attempting to break out above its resistance level of 28.50. WSH
is trading in a cup-and-handle pattern. WSH has an uptrending
ADX of 27.
Supervalu
(
SVU |
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high. SVU has a
TradingMarkets.com RS3 rating of 81
and an uptrending
ADX of 40.
Coke
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KO |
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hit a 52-week high
and looks like it is moving out of a high-level cup. KO looks a little
extended intraday, but could offer some nice continuation for longer-term
players on Wednesday. Keep on your watch list. Also watch Pepsi
(
PEP |
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Pepsi is approaching 52-week highs and has a nice weekly chart.
Fred’s, Inc
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FRED |
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breaking out of an inverted head-and-shoulders pattern. FRED broke above the
neckline with increasing volume. Fred’s has a
TradingMarkets.com RS3 rating of 91.
FRED is trading at 39.91, up 1.06.
With the extreme oversold conditions
in the markets and positive internals, we could see some positive movement
through today’s close.