These Three Sectors Account For Four-Fifths Of Decline…
The Standard & Poor’s 500 Index
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ET. Financial, drug and phone
stocks accounted for about four-fifths of the decline. The Nasdaq Composite
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$COMPQ |
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PowerRating) Index declined 11.13, or 0.9%, to 1281.67.
At a little past the midpoint of today’s trade, US stocks are dropping for a
second day as Eli Lilly
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LLY |
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Stanley
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MWD |
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PowerRating) discouraged investors from buying telephone stocks.
Citigroup is on the decline
(
C |
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PowerRating) after Chief Executive Sanford Weill agreed to
be questioned by Eliot Spitzer, New York state’s attorney general, as part of an
investigation into research practices at the world’s biggest financial services
company.
In the past two weeks, the S&P 500 has advanced 13% as companies including IBM and Eastman Kodak reported
rising earnings. The benchmark index touched its lowest point in more than five years
on Oct. 9.
The S&P 500 Index has met
solid resistance at the 900 level, which serves as secondary resistance. At the
halfway point of trade, initial resistance is at the 61.8% (drawn from the Aug.
high to the recent Oct. low) this the 891 level. The initial support is at the
873 level with secondary resistance at the 868 zone which is the 50% retracement
level.
The Nasdaq Composite is
pulling up just off of the worst levels of the day. Initial support is at 1280
with secondary support at the 1268.55 level. This is the 50% retracement level
from the Aug. high to Oct. low. Initial support is at 1300 and the 1305 level.
1305 is the 61.8% retracement level. The Nasdaq is trading at 1284.25 down 7.55.
Despite the negative opening on the Phlx
Semiconductor Index
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$SOX.X |
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PowerRating), it managed to pull up out
of the negative zone. The SOX is being led by
(
AMD |
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(
ISIL |
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PowerRating),
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ESST |
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PowerRating),
(
IDTI |
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PowerRating),
(
IRF |
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PowerRating).
Other sectors that are positive are: Defense, Oil Service
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$OSX.X |
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PowerRating),
Disk Drive, Software
(
$GSO.X |
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PowerRating), Utility,
Homebuilding and Video Game. The weaker sectors are: Drug
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$DRG.X |
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PowerRating),
Broker/Dealer
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$XBD.X |
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PowerRating), Banking
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PowerRating),
Insurance, Gold
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PowerRating), Prescription Benefit Mgt,
Lodging, Gaming, Biotech
(
$BTK.X |
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PowerRating) and Telecom.
Boston Scientific
(
BSX |
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PowerRating) is breaking
out to hit a 52-week high and is experiencing unusually high volume for the
first time of the day. BSX has a
TradingMarkets.com RS3 rating of 94 and an up trending
ADX of 40.
Hyperion Solutions
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HYSL |
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PowerRating) is testing
its over head resistance around 24.00 with strong volume today. HYSL has a
TradingMarkets.com RS3 rating of 97 and an up trending
ADX of 26.
PEC Solutions
(
PECS |
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PowerRating) is breaking out
above the neckline of an inverted head-and-shoulders pattern with very strong
volume. PECS has a
TradingMarkets.com RS3 rating of 96 and an uptrending
ADX of 25.
Adolph Coors
(
RKY |
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PowerRating), from the
Nightly Daytraders Report, is continuing to exhibit momentum in Wednesday’s
session. Two days ago the stock staged a breakout on range expansion
following a momentum gap to the upside. RKY holds a
3-month
relative strength rank of 87 from TradingMarkets.com.
Nasdaq Market Breadth
Adv: 1359 UpVol: 3435394
Dec: 1527 DnVol: 3478465
Net: -168 Net: -43071
NYSE MArket Breadth
Adv: 1349 UpVol: 29590651
Dec: 1709 DnVol: 45782332
Net: -360 Net: -16191681