Why The Market’s Bias May Be Changing
Stocks are little changed so far today,
with investors possibly locking in profits amid diminishing expectations that the
Federal Reserve will cut interest rates next week. At this point, the major
averages have settled in with a slightly negative bias. In midday trading, the
Dow was up less than 1 point
to 8713 after rallying 255.87 points Thursday. In early trading Friday, the Dow
had fallen more than 130 points, while the Nasdaq fell
5.60 to 1311 after rising 35.62 yesterday.
The Nasdaq Composite
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$COMPQ |
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worked its way higher to close the gap, but by the mid point of trading it was drifting from the day’s highs.
The S&P 500
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pulling back from its 910 intraday high. At the mid point of trading, the S&P
was trading in a descending triangle showing signs of further intraday declines.
The stronger sectors today are: Gold, Airlines,
Biotechs, Utilities, Oil Services and the
Amex Biotechnology Index
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BTK.X |
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TradingMarkets.com Strongest Sectors of The Past 5 Days started out
negative and is now trading higher. Some of the stocks helping push the Biotech
sector positive are: Amgen
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AMGN |
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BGEN |
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IDEC Pharmaceuticals
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The weaker sectors are: Insurance, Retail, Banks
and Semiconductors.
Doral
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is breaking out above its resistance line (40) with
unusually high volume.
Deluxe
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is rallying to a two-month high with increasing volume. DLX has a
TradingMarkets.com RS3 rating of 91 and an up trending
ADX of 32.
Guidant
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GDT |
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and handle pattern on the daily chart. GDT has a
TradingMarkets.com RS3 rating of 96 and an up trending
ADX of 32.
Icos Corp
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ICOS |
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cup-and-handle with increasing volume. Icos has a
TradingMarkets.com RS3 rating of 98 and an up trending
ADX of 32. Icos looks to be pulling back from the high. A possible
trigger will be if ICOS tests the 24.50 support.
Nasdaq Breadth:
Adv: 1329 UpVol: 31004031
Dec: 1740 DnVol: 41882400
Net: -411 Net: -10878369
NYSE Breadth:
Adv: 1630 UpVol: 42735329
Dec: 1473 DnVol: 35531156
Net: +157 Net: +7204173