Three Factors That Might Trigger Microsoft…
The Dow Jones Industrial Average
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$INDU |
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and the Nasdaq Composite
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performance of yesterday’s market action. First, the markets are rebounding
from a weak opening. Now we will have to wait and see if we get a late-day
rally.
The weaker opening was due primarily to a retail sales report that indicated the loyal consumers were not spending as much money in May as in previous
months. According to the Wall Street Journal, the Commerce Department reported
retail sales dropped 0.9% in May, dragged down in part by a decline in auto
sales. Excluding the auto sector, sales fell 0.4%. Economists surveyed by
Thomson Global Markets anticipated a 0.4% decline in sales to consumers, a key
measure of economic strength.
In midday trading, the Dow Jones Industrial Average was lower at around
the 9578 level. The Nasdaq Composite Index was lower by just a point.
The PHLX Semiconductor sector index
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$SOX.X |
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yesterday, but today it has had trouble staying positive. A positive SOX is a
key participant for a Nasdaq rally.
The Oil Service sector
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had a nice rally today and is one of the strongest sectors on the day. However,
some of the stocks are starting to look a little extended intraday and may be forming somewhat of a head and shoulders pattern on the
five-minute charts. Some
of the stocks forming these patterns include
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DO |
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BHI |
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BJS |
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and
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NBR |
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your own eye and wait for some confirmation before entering.
United Surgical Partners
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USPI |
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rallying from a pullback off of the high. USPI pulled back to test its 50-day
moving average and is rallying with very strong volume. USPI has a
TradingMarkets.com RS3 rating of 96 and an uptrending
ADX of 20.
Microsoft
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MSFT |
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is forming a double bottom. A possible trigger point would be a break above the
peak, which would be 56.00. An increase in volume would help the move.
Nasdaq Breadth: 2002-06-13 13:22:46
Adv: 1445 / Dec: 1759 Net: -314
UpVol: 47000656 / DnVol: 31063560 Net: +15937096
NYSE Breadth: 2002-06-13 13:22:46
Adv: 1367 / Dec: 1719 Net: -352
UpVol: 34308504 / DnVol: 46415610 Net: -12107106