This Would Boost The Naz
At the midday point on a Triple Witching
Friday, stocks are attempting to pull out of the cellar after declining in the
first half of trade. A declining dollar and mounting turmoil in the Middle
East continue to prompt investors to reduce their exposure to US equities.
The September dollar
(
DXU2 |
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PowerRating) continues
sharply lower this morning as the record April trade deficit added another
reason for
the decline. According to the Wall Street Journal, record trade outflows
force record investment inflows which global investors just aren’t interested in
given the continued weakness in the equity markets and the opportunities abroad.
The dollar is trading at Y121.9 and at a two-year low against the euro at $0.9639.
The weekly chart for the September dollar
shows that prices are in a steep downtrend. Solid support is at the 108.00 area.
Historically, downtrends tend to last longer in major currencies. This means
that there is a possibility that we could see further decline in the dollar in
the coming weeks.
The Nasdaq Composite
(
$COMPQ |
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PowerRating), has
pulled back to the recent low at 1445. This has been the support for today’s
session. If the Nasdaq can rally, a break above the 1451 and 1460 would be
encouraging.
The S&P 500
(
$SPX.X |
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below the key 1000 support level, and the internals are weak.
Northrup Grumman
(
NOC |
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PowerRating) is forming a
pullback from high. NOC is holding a
3-month relative strength rank of 82 from TradingMarkets.com.
Stericycle
(
SRCL |
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PowerRating) is pulling back from
its recent high. SRCL is holding a
3-month relative strength rank of 88 from TradingMarkets.com.
Yellow Corp.
(
YELL |
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PowerRating) is pulling back after
a thrust to the upside. YELL is holding a
3-month relative strength rank of 81 from TradingMarkets.com.
The QQQs continue to drift lower and trade at
their worst levels of all time. On a weekly chart, you see a descending
triangle and the Q’s have broken below the support level.
Ambac Financial Group
(
ABK |
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PowerRating) is breaking
out of an ascending triangle with increasing volume. ABK has a
TradingMarkets.com RS3 rating of 92 and an uptrending ADX of 25.
The markets are in a near-term oversold condition,
and it seems that buyers are reluctant to move into the market before the
weekend.
Both the CBOE Volatility Index
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$VIX.X |
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PowerRating)
and the Nasdaq Volatility Index
(
$VXN.X |
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PowerRating) are currently moving towards new
eight-month highs.
Click Here For the TradingMarkets.com Market Bias Indicators.
NASDAQ Breadth: 2002-06-21 13:43:23
Adv: 1503 / Dec: 1745 Net: -242
UpVol: 2887280 / DnVol: 7646182 Net: -4758902
NYSE Breadth: 2002-06-21 13:43:23
Adv: 1258 / Dec: 1874 Net: -616
UpVol: 25666680 / DnVol: 84937476 Net: -59270796