Is This The Line Of Least Resistance Into Year-End?

The
biggest indicator in a long time gets released

before the bell on Friday: The Unemployment Report. Thus far, the Nasdaq has
struggled severely with the 2,000-level and looks like it may need a nice strong
piece of news to propel it higher. Could this report be that news?

image src=”https://tradingmarkets.com/media/2003/Tim/tt120203-01.gif” />

Many growth stocks have
found their ways safely above the 50-day moving averages following the recent
correction that began on Oct. 15. Take Yahoo!

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for example. The stock traded below its line of
support for several days, before rebounding to a recent high of 44.29; just
a stone’s throw from a new pivot point of 44.87.

image src=”https://tradingmarkets.com/media/2003/Tim/tt120203-03.gif” />

Former leaders have regained
strength and found themselves at new highs. Genprobe

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comes to mind here. The company’s performance has still shown
strong earnings growth and the stock took advantage.

image src=”https://tradingmarkets.com/media/2003/Tim/tt120203-04.gif” />

There has even been a little
life in the Chinese Internet names. Sohu.com

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stands out as one of the strongest, with amazing EPS and sales growth
rates.

image src=”https://tradingmarkets.com/media/2003/Tim/tt120203-05.gif” />

Semi names like O2
Micro

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are capable of providing strong leadership
in the near-term. The leading telecom sector may also be able to help propel
this market higher, with names such as Viasat

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.

image src=”https://tradingmarkets.com/media/2003/Tim/tt120203-06.gif” />

image src=”https://tradingmarkets.com/media/2003/Tim/tt120203-07.gif” />

Whatever the case may be,
the market’s internals and leadership may prove that the line of least
resistance is higher into the year-end. Today’s lower-volume pullback
in the Nasdaq is just another piece of the puzzle.

In honor of the stock market,
I will be in New York over the next few days and visiting the exchange on Friday.
The column will resume again next Tuesday.

Have a Successful Week!

Tim
Truebenbach

timt@tradingmarkets.com