Three Reasons For The Positive Bias
At today’s midpoint, the three major indices are
mixed. The Dow Jones Industrial Average
(
$INDU |
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& Poor’s 500 Index
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better-than-expected government reports on durable-goods orders, home sales and
jobless claims suggested corporate profit growth will begin to accelerate.
Telecommunications chipmakers Qualcomm
(
QCOM |
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Devices
(
RFMD |
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(
NOK |
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industry-wide mobile-phone sales may climb as much as 15% next year.
Bed Bath & Beyond
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BBBY |
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household-goods retailer said second-quarter earnings surged 40%.
The S&P 500 Index
(
$SPX.X |
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1.0 Volatility Band and formed a 1,2,3 top on the intraday chart. The S&P 500
has pulled back and broken down below the 50-period moving average. Read
Lewis Borsellino’s S&Ps PM for today’s support and resistance levels on
the S&P 500.
The Nasdaq has dropped off into negative
territory. Part of this could be due to some profit-taking after the strong
morning and yesterday. The fall in the Semiconductor Index
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$SOX.X |
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contributing to the tech-heavy Nasdaq’s decline. The SOX was one of the leading sectors
yesterday but has dropped off today.
Other sectors that are moving the markets are
Oil
(
$XOI.X |
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(
$OSX.X |
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an Iraq invasion. Auto stocks are strong,
thanks to some positive comments from General Motors
(
GM |
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(
F |
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positive earnings guidance from Marriot
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MAR |
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PowerRating), Airlines
(
$XAL.X |
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Machinery, Grocery Retail, Railroad and Insurance.Â
The Homebuilders are on the rise due to the earlier New Home Sales Report. Sizeable gains
were posted by: Hovnanian
Enterprises
(
HOV |
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(
MDC |
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(
KBH |
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Ryland Group
(
RYL |
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(
CTX |
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PowerRating). The
weaker sectors are: Gold
(
$XAU.X |
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(
$BTK.X |
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Invision Technologies
(
INVN |
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PowerRating)
is rallying from the 50-day moving average after a pullback from the high. INVN
has a
TradingMarkets.com RS3 rating of 96 and an up trending
ADX of 30.
Nasdaq Breadth
Adv: 1382 UpVol: 176317236
Dec: 1636 DnVol: 706978305
Net: -254 Net: -530661069
NYSE Breadth
Adv: 2033 UpVol: 57754796
Dec: 1102 DnVol: 39094750
Net: +931 Net: +18660046