What’s Fueling Today’s Fire

The two major factors that are moving
today’s markets
are the Employment Data and the Tech
sector. The unemployment rate dropped unexpectedly to 5.7%, lowering
expectations of a Fed rate cut at the next FOMC meeting on Sept. 24. Prior to
this morning’s employment report, a September move was given 46% odds.

Tech stocks are helping fuel the fire today.
Amongst the strongest sectors on the day are Biotech
(
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,
Networking
, and Semiconductors
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. The semis started off
strong when Intel
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revised its outlook, now in line with
prior expectations. Other sectors that are strong are: Banks
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,
Retail and Oil Services
(
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. October crude oil
(
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has risen above the bench mark $30 a barrel mark.

The weaker sectors are Gold
(
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and Insurance.

The S&P 500
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has held above
the short-term support at 887. The S&P has pushed up through 895 with 899 and
903 being initial resistance. Secondary resistance is at 910.

Apria Healthcare
(
AHG |
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has pulled back
to test its 50-day moving average at (22.63) and now AHG has broken above its
50% retracement level (23.69) with increasing volume. AHG has a

TradingMarkets.com RS3 rating of 82
and an up trending

ADX
of 26.

Dean Foods
(
DF |
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is breaking out to hit
52-week highs with increasing volume. Dean Foods has a
TradingMarkets.com RS2 rating of 93
and an up trending

ADX
of 25.

Lowe’s Companies
(
LOW |
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is forming a
cup-and-handle pattern. A break above 44.00 with increasing volume will signal a
possible rally to the upside. LOW has a

TradingMarkets.com RS3 rating of 92
and an up trending

ADX
of 26.

Borgwarner
(
BWA |
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is rebounding off the
20-day moving average and could be setting up for a retest of its prior high.
BWA holding a

3
-month
relative strength rank of 80
from TradingMarkets.com.

Belo Corp.
(
BLC |
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is rebounding out of a
pullback to the 20-day moving average.
BLC has a

3
-month
relative strength rank of 84
from TradingMarkets.com.

Nasdaq Breadth

Adv: 2118 UpVol: 6562039

Dec: 947 DnVol: 802063

Net: +1171 Net: +5759976

NYSE Breadth

Adv: 2241 UpVol: 52654491

Dec: 906 DnVol: 18963770

Net: +1335 Net: +33690721