The Technical Pattern That’s Launching A Rally…
For the sixth straight week, the markets
opened lower. All of the usual culprits were present weighing on the
markets. Many investors and traders are concerned about lower corporate profits
than expected, a weak dollar vs. the yen and euro and a sluggish economic
turnaround. Then by midday, the S&P 500
(
$SPX.X |
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PowerRating) shook off all
of the doom and gloom and put in a double bottom on the intraday chart, hitting
the low point at 970.00. The rally led by Microsoft and
(
MSFT |
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Electric
(
GE |
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PowerRating) put the S&P 500 in positive territory.
The Nasdaq 100
(
$NDX.X |
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PowerRating) continued
to fall below the September 2001 lows and very little buying was going on. The
Nasdaq Composite
(
COMPQ |
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PowerRating) has been heading for its September 2001 low.
It is very close to hitting 1400. Its extreme low in September was 1387.
According to Anderson & Strudwick, the Nasdaq was worth about $6.25 trillion
at its peak in 2000. Today, it’s worth about $2.4 trillion. Like the S&P
500, the Nasdaq has found its footing on an intraday double bottom and rallied
very strongly into positive territory.
The S&P 500
(
$SPX.X |
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PowerRating) continues its
decline, with most of the sectors in the red. One bright sector has been gold.
August gold
(
GCQ2 |
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PowerRating) opened at $325.40. August gold has influence
on the movement of gold stocks. The
Phlx Gold
& Silver Index ($XAU.X)
is trading positive as well as some of the stocks in the sector, such as
Anglogold
(
AU |
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PowerRating), Barrick Gold
(
ABX |
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PowerRating), Newmont Mining
(
NEM |
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PowerRating) and
Placer Dome
(
PDG |
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PowerRating).
Autozone (AZO)
is trading in a triangle at its recent high. AZO is carrying a
3-month relative strength rank of 82 from TradingMarkets.com.
Career Education
Corp.
(
CECO |
Quote |
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PowerRating) is moving higher with above–average volume to hit all-time
highs. CECO has a
TradingMarkets.com RS3 rating of 89.
Boston Scientific
(
BSX |
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PowerRating) is pulling back
from its recent high. BSX is holding a
3-month relative strength rank of 95 from TradingMarkets.com.
Corinthian Colleges
(
COCO |
Quote |
Chart |
News |
PowerRating) has broken out above
resistance with strong volume to hit all-time highs. COCO has a
TradingMarkets.com RS3 rating of 99
with an uptrending
ADX of 56.
Education
Management Corp.
(
EDMC |
Quote |
Chart |
News |
PowerRating) is breaking out above its resistance with
strong volume. Friday, EDMC had above average volume as well.
Nasdaq Breadth: 2002-06-24 13:28:34
Adv: 1171 / Dec: 2293 Net: -1122
UpVol: 412414900 / DnVol: 562146200 Net: -149731300
NYSE Breadth: 2002-06-24 13:28:34
Adv: 1060 / Dec: 2115 Net: -1055
UpVol: 26617500 / DnVol: 59844945 Net: -33227445