More Charts of Interest

The market continues to look for leadership and it is shaping up on Wednesday move higher. How this unfolds moving forward will set the tone for the broad markets. Monday move lower, Tuesday bounced back and Wednesday followed through on the upside adding some moves that were of note from my perspective. Let’s look at the results…

First the Dow… yes, the Dow Jones Industrial Average. The index closed at 17,879 and breaking or pushing to a new high. The follow through (while not huge) happened today and that is a positive. Each digestion point is needed, but the continuation following is equally important to the trend. The upside remains in play and is in position to continue the upside move near term.

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Next semiconductors have been one of the key leaders on the move off the October low. They tested earlier this week and today headed to a new high to keep the upside in play and provide some much needed leadership for the broad markets.

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Next biotechnology equally has been a key leader in the move higher. The test earlier in the week as been followed with a move to a new high as well. The sector continue to see strong momentum and money flow as investors like the news on new drugs, the outlook for larger profits under the new healthcare system and positive fundamentals going forward.

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The market needs leadership if it is to continue the upside trend and today we got some important leadership from the markets as it reinforced the past relative to the future. The downside components we discussed yesterday are still moving lower with crude oil, natural gas and energy stocks all pushing lower. The key is the bounce of these lows and if they can continue with some positive news to reverse the current trends. Worst case if we can cut the losses and tread water in these areas and take them out of the headlines the better the upside push will be into the year end. We have to take it one day at a time and let this all unfold accordingly and then take advantage of what the market gives… up or down.