Why The Market Shook Off Bad News
Traders may try to take home profits from this
rally, but there will be some selling because the markets have run so far, so
fast. At midday trading, the markets are shaking off
consumer confidence numbers which tumbled in July as a result of volatility in the stock market and continuing concerns over jobs
and the economy. The Conference Board said Tuesday its consumer confidence index
fell sharply to 97.1 from a revised 106.3 in June, putting the index at its
lowest level in five months.
One thing to remember is that people were polled when the market was suffering from a strong
sell-off and uncertain projections about the economy. In August we may see
better number if the markets can continue as it has the last couple of
sessions.
The broader markets are positive and are trading
off of the worst levels of the day. Some of this selling is profit taking.
The Dow Jones Industrial Average
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$INDU |
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dropped off in early trade and landed at 8540.12 for the intraday low, then
shrugged off the negative Consumer Confidence news and rallied higher. It is now
in the green at midday trade.
The Nasdaq
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$COMPQ |
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with the help of Semiconductors
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$SOX.X |
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Storage, Drugs
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$DRG.X |
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$BTK.X |
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$XAL.X |
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Gold
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$XAU.X |
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The S&P 500
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$SPX.X |
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positive after putting in a 1,2,3 double bottom on intraday chart.
Some of the weaker sectors are: Banks
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$BKX.X |
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$XBD.X |
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Networkers, Integrated Oil, Oil Services
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$OSX.X |
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Paper
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$FPP |
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Coventry Health Care
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CVH |
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out of a 1,2,3 bottom on the daily chart with increasing volume. CVH is trading
higher today at 28.34 up 2.31.
Ameren
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AEE |
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1,2,3 bottom with increasing volume. Today Ameren is breaking out above
resistance with increasing volume. AEE has a
TradingMarkets.com RS3 rating of 81 and an up trending
ADX of 31.
Alcon
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ACL |
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bottom with increasing volume. Alcon has a
TradingMarkets.com RS3 rating of 83 and a an up trending
ADX of 35.
Ameren
(
AEE |
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Chart |
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PowerRating) is rallying out of a
1,2,3 bottom with increasing volume. Today Ameren is breaking out above
resistance with increasing volume. AEE has a
TradingMarkets.com RS3 rating of 81 and an up trending
ADX of 31.
Medimmune
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MEDI |
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PowerRating) is breaking out above
the 50-day moving average on on expansion of range. MEDI is holding a
3-month relative strength rank of 77 from TradingMarkets.com.
Nasdaq Breadth:
Adv: 1678 UpVol: 6205299
Dec: 1518 DnVol: 2290086
Net: +160 Net: +3915213
NYSE Breadth:
Adv: 1755 UpVol: 71449255
Dec: 1382 DnVol: 33233780
Net: +373 Net: +38215475