Sectors Of Strength In Volatile Market
The major indexes are in the red
during the first
half of trade. The Nasdaq Composite
(
$COMPQ |
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PowerRating) continues to slide as
the index has lost 11% in the last five sessions. Yesterday’s low on the
Nasdaq (1272) was tested and violated as the Composite broke lower to
1247.89. On the intraday chart, the 1295-1301 level is an area of resistance. A
break above these levels could give way to a test of secondary resistance at
1312-1325. Support is around 1052.
The Dow
(
$INDU |
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PowerRating) continues to be choppy. It
has crossed back and forth into positive and negative territory. Volume is heavy
again today.
Some of the positive sectors today are:
homebuilders, consumer products, restaurants, tobacco, retail, machinery, oil
services, building products, auto components.
Some of the negative sectors are: banks. One
reason for this is that there is some concerns about how some banks aided Enron
in some shady bank financing. Also the Semiconductors are hurting. Shares of
Novellus Systems
(
NVLS |
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PowerRating) fell after the chip-equipment company issued a
weak outlook. The PHLX Semiconductor Index
(
$SOX.X |
Quote |
Chart |
News |
PowerRating) has pulled
back to intraday lows. Its low for the year was 343.56 on July 11. Today the
SOX has a -1.00 Volatility Band at 344. Other negative sectors are brokers,
telecom, casinos, beverages, drugs, steel, hotel, healthcare, media, gold, REITs.
Bemis
(
BMS |
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PowerRating) is staging a low-level
breakout and expanding its daily trading range. BMS is reversing the last
two lows and closes on the daily chart.
Accredo Health
(
ACDO |
Quote |
Chart |
News |
PowerRating) is appearing
vulnerable to a retest after a counter trend rally off its recent low. ACDO
is holding a
3-month relative strength rank of 16 with a downtrending ADX of 41 from
TradingMarkets.com.
The trend in last week’s market was for the market
to sell off into the close. In today’s trade there has been little conviction
from buyers as any rally attempt is being sold into.
NASDAQ Breadth
Adv: 787 UpVol: 411030700
Dec: 2586 DnVol: 814933378
Net: -1799 Net: -403902678
NYSE Breadth
Adv: 613 UpVol: 25611760
Dec: 2618 DnVol: 122403221
Net: -2005 Net: -96791461