Where There’s Key Support
At the midpoint in today’s trading, the
markets are improving from an early stumble. At the beginning of the
session, the markets gapped after the futures were strong. Then they pulled back
to cover the gap and now are green. The key to all of this is that the three
major indices are still above their 50-day moving averages on the daily chart.
The Dow Jones Industrial Average
(
$INDU |
Quote |
Chart |
News |
PowerRating)
is above the 8823 level, which is the 50-day moving average and serves as
support.
The Nasdaq Composite
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) is
trading towards its best levels of the day. The market internals are strong at
the midpoint with advancing volume outpacing the declining volume 7 to 1.
Initial resistance is at around the 1413 level and secondary resistance is at
1419. Support is at around 1389.
The S&P 500 Index
(
$SPX.X |
Quote |
Chart |
News |
PowerRating) is
trading right above the 38.2% retracement line (928.68). This is also the 50-day
moving average. The Sept S&P 500 futures
(
SPU2 |
Quote |
Chart |
News |
PowerRating) have support at
915.50 with initial resistance at 958.80/961. Secondary resistance at 969/980.
Some of the stronger sectors on the day are:
Wireless, Semiconductors
(
$SOX.X |
Quote |
Chart |
News |
PowerRating), Internet,
Networking, Biotech
(
$BTK.X |
Quote |
Chart |
News |
PowerRating), Storage, Internet
Security, Prescription Benefit Management and Airline
(
$XAL.X |
Quote |
Chart |
News |
PowerRating).
Weaker Sectors are: Gold
(
$XAU.X |
Quote |
Chart |
News |
PowerRating),
Broker/Dealer
(
$XBD |
Quote |
Chart |
News |
PowerRating), Retail
(
$RLX.X |
Quote |
Chart |
News |
PowerRating), Oil Service
(
$OSX.X |
Quote |
Chart |
News |
PowerRating), Banking
(
$BTK.X |
Quote |
Chart |
News |
PowerRating) and Home Building.
Penn National Gaming
(
PENN |
Quote |
Chart |
News |
PowerRating) is
breaking out above the 18.00 resistance level to a 90-day high with increasing
volume. PENN has a
TradingMarkets.com RS3 rating of 82.
SanDisk
(
SNDK |
Quote |
Chart |
News |
PowerRating)
is breaking out above the 16.00 resistance line with strong volume. The 18.00
area serves as its next resistance point.
Global Imaging
Systems
(
GISX |
Quote |
Chart |
News |
PowerRating) is breaking out above the resistance point (21.00) to
new highs with above average volume.
Doral
(
DORL |
Quote |
Chart |
News |
PowerRating)
is breaking out of a symmetrical triangle with increasing volume. On the
daily Doral tried to break lower, but the bulls pulled it up and it is now
breaking above the resistance on the symmetrical triangle. DORL has a
TradingMarkets.com RS3 rating of 94.
Nasdaq Breadth
Adv: 1984 UpVol: 6833582
Dec: 1162 DnVol: 1289774
Net: +822 Net: +5543808
NYSE Breadth
Adv: 2060 UpVol: 48904124
Dec: 1061 DnVol: 22897010
Net: +999 Net: +26007114