One of my immediate concern is the IIX DOT diversion, these two indexes more often than not tend to move in tandem but this present diversion needs some attention, like is it sign of trouble once again for high |PEG internet sector.
I have been looking at DOT sector make up INKT Yhoo Amzn sell off hurt DOT a great deal more than IIX, I would like this 488 the 13 days MA to be taken out, if DOW has a lot of laggards as James has pointed out I see that for Comp to move higher we need the strength in the techs, that would bring NDx into play but NDX play has a lot to do with the new tech stocks and although NWX has started moving up but telecommunication sector weakness as a result of huge auctions I would think that IIX should hold the cross over of 25 days mA and 13 days MA needs to continue if this move is to sustain above the 3860 on NDX and Comp 3945, for me if these levels are to be out on closing basis IIX cannot afford to sell like DOT..
The up tick in IIX is very important for htis particular stage of move in Comp, that momentum required for a move up has to come from this secotr, on DOW I see a good positive sign, I think if we take out this area of resistance at 10600-687 level we go a lot higher, recent sell off in Comp and DOW was nothiong more than retracement of indexes after a solid move from 3000 level, on DOW it was concerns about the future of industrial earnings P&G had set the tone but I think a lot of good values would help propel these markets forward, one stock that Ilike at these levels alongwoth others beaten down WCOM, cant go wrong on that for medium term holders like 1 to 2 years..
I expect market to take out these minor points of resistances and move higher.. ofcourse if supports like 466 on IIX and 3840 on Comp are taken out on two closing basis I will be neutral on these markets for atleast a week.. |
