Where The Support For Tech Is Coming From
Blue chips stocks are wobbly
in the first half of
trade, caused by a slew of economic reports released early in the session, as
they hovered near positive ground.
Earlier today, a preliminary report from the University of Michigan on consumer
sentiment for August cooled off in rally plans for today. The reading, released
to subscribers this morning, showed a decline in its sentiment index to 87.9
from 88.1 in July. Wall Street had been anticipating a decline in the measure.
After being down nearly 100 points, the Dow Jones Industrial Average
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$INDU |
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is trying to break up to hit its 50-day moving average. So far technology shares
are being supported by rosy earnings and revenue outlook from Dell Computer
(
DELL |
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On the daily chart, the S&P 500
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$SPX.X |
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negative open and is now slightly positive. The S&P 500 is trading at around 933
right at the 50-day moving average. The S&P 500 has support at around the
925/926 level. If the S&P 500 can break through the 50-day moving average the
next resistance barrier is at 952.
On the daily chart, the Nasdaq Composite
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$COMPQ |
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resistance is at the 50-day moving average at 1378. Support is at 1325/1322.
The Phlx
Semiconductor Index
(
$SOX.X |
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above its 20-day moving average and pulled back to test it. Now it is trading
near the intraday high. This is close to a new recovery high today. Resistance
is at 335/337 with secondary resistance at 343/345. Support is at 330/327 the
20-day moving average. Some of the stronger stocks helping push the SOX are
Texas Instruments
(
TXN |
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(
MXIM |
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Linear Technology
(
LLTC |
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(
KLAC |
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Other positive sectors are: Computer Hardware,
Airlines
(
$XAL.X |
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The weaker sectors so
far are: Biotech
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$BTK.X |
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(
$OSX.X |
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$BKX.X |
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CR Bard
(
BCR |
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BCR carries a
3-month
relative strength rank of 89 from TradingMarkets.com.
Advanced Auto Parts
(
AAP |
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rallying from a 1,2,3 bottom on stronger volume for this time of the day. It has
now broken above its 50-day moving average, which also happens to be right
around the 50% Retracement line. (The Retracement is from the Low in March to
the High in May). Support is at 48.00.
Coinstar
(
CSTR |
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out above the 32.00 resistance level with increasing volume. CSTR is approaching
the 52-week high at 35.00. Initial resistance is at 34.00. CSTR has an up
trending
ADX of 28.
Pixar
(
PIXR |
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ascending triangle with very strong volume. PIXR has a
TradingMarkets.com RS3 rating of 81.
Nasdaq Breadth
Adv: 1691 UpVol: 5565946
Dec: 1390 DnVol: 1910010
Net: +301 Net: +3655936