What’s Leading The Rally
After opening negative and trading in
the red in the first half of trade, the major indices
have rallied to the positive side.
The Nasdaq Composite
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) has
fallen below the 61.8% retracement level (drawn from the July/Aug rally). The
Nasdaq was dragged down today by Semiconductors
(
$SOX.X |
Quote |
Chart |
News |
PowerRating),
Software
(
$GSO.X |
Quote |
Chart |
News |
PowerRating), Airline
(
$XAL.X |
Quote |
Chart |
News |
PowerRating), Internet,
Broker/Dealer
(
$XBD.X |
Quote |
Chart |
News |
PowerRating)], and Banking
(
$BIX.X |
Quote |
Chart |
News |
PowerRating). Support
is now at around the 1260 level (70.7% retracement level). Overhead resistance
is at the 1300/1307 area which is the 50% retracement level. Secondary
resistance is at the 1334 area which is the 20-day moving average.
On the intraday chart, the S&P 500
(
$SPX.X |
Quote |
Chart |
News |
PowerRating)
rallied above the key resistance level at 890.00 and has been able to sustain this area of support.
Stronger sectors on the day are
Phlx Gold
& Silver Index
(
$XAU.X |
Quote |
Chart |
News |
PowerRating), which being pushed by the Dec. gold
(
GCZ2 |
Quote |
Chart |
News |
PowerRating) contract which
opened at $321.50 and is trading positive. Some of the stocks from the gold
sector, Anglogold
(
AU |
Quote |
Chart |
News |
PowerRating), Barrick Gold
(
ABX |
Quote |
Chart |
News |
PowerRating), Newmont
Mining
(
NEM |
Quote |
Chart |
News |
PowerRating) and Placer Dome
(
PDG |
Quote |
Chart |
News |
PowerRating) are all
trading positive so far. Dec. Gold is forming an inverted head-and-shoulders
pattern. The neck line (support) is at 315. Dec. gold is trading at
$324.10 an ounce up 2.60. Health Care,
Tobacco, Homebuilding, Selected Retail and Prescription
Benefit Management are other strong sectors on the day.
Cabot Microelectronics [CCMP|CCMP] is
moving higher off the 50-day moving average and a 50% retracement level.
CCMP is holding a
3-month
relative strength rank of 70 from TradingMarkets.com.
L3
Communications
(
LLL |
Quote |
Chart |
News |
PowerRating) is hitting a 2-month high with increasing volume.
LLL has broken above the 50% retracement level (drawn from the year’s high and
low point).
Teva Pharmaceutical Industries
(
TEVA |
Quote |
Chart |
News |
PowerRating) has rallied from its 50-day moving average to break above its 20-day
moving average with very strong volume.
Nasdaq Breadth
Adv: 1153 UpVol: 1795527
Dec: 1894 DnVol: 3751752
Net: -741 Net: -1956225
NYSE Breadth
Adv: 1346 UpVol: 28627392
Dec: 1762 DnVol: 28424700
Net: -416 Net: +202692