Where The Buyers Are Today
Stocks briefly shook off their opening
exhaustion and moved higher after fresh data showed that the housing sector
remains strong for the world’s largest economy. At just past the mid point on the last
trading day of the week, the broader market is virtually flat as high-tech
issues are trading positive amid selective buying, while blue chips are choppy
after a mixed bag of economic news.
Stocks had opened on a lackluster note after
Wall Street got worse-than-expected data on orders for durable goods that could
raise doubts about the US economic recovery. Consumer sentiment numbers,
though soft, did not stray much from economists’ expectations, analysts said.
Traders are also looking at corporate earnings
news that included some disappointing results and outlooks from high-profile
companies such as fiber optics firm JDS Uniphase
(
JDSU |
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PowerRating) whose shares
were down 10%.
The broad Standard & Poor’s 500
(
$SPX.X |
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PowerRating)
is trading in a range between 880 and 890.
The Nasdaq Index
(
$COMPQ |
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PowerRating) is
holding its support level at 1300/1295 area with a slightly positive tone. On
the intraday chart, watch for support at 1305/1303 for an indication of the
strength of the current bounce. Initial resistance is at 1318/1320 with
secondary resistance at 1327/1330.
Health Net
(
HNT |
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PowerRating) gapped lower at the
open to test the key support level at around 25. This is also the 50%
retracement drawn from the June high to the August low. Right now, the 61.8% retracement level serves as resistance at 26.00.
HNT has a TradingMarkets.com RS3 rating of 88 and an uptrending
ADX of 30. Health Net is trading at 25.88 up .08 with very heavy
volume.
Amgen
(
AMGN |
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PowerRating)
is exhibiting nice early strength off of a successful test of the 200-day
EMA.
Today marks the third test this week of this average, with today’s action
reversing nicely off of this key level. On the daily chart AMGN is confirming
the 200-day EMA with August resistance highs now acting as support.
Nasdaq Market Breadth
Adv: 1645 UpVol: 4673920
Dec: 1259 DnVol: 2433512
Net: +386 Net: +2240408
NYSE Market Breadth
Adv: 1743 UpVol: 40269270
Dec: 1366 DnVol: 32309882
Net: +377 Net: +7959388