{+++} The indexes did well today as the DOW 30 made more highs and the SPX is very close again to more highs. The Nasdaq also tagged fresh new highs before backing off. The problem child, once again, was the Russell 2000 as it traded down about a quarter of a percent. Notice that the Russell is managing to hold the 200 day moving average so far. It did break its 50 day moving average today.
The SPX is at the tippy top of a channel. It may be due for a breather, but so far, nothing can stop it.
Personally I’m still feeling the effects of Yellen’s analyst call on biotech yesterday. Obviously it wasn’t just a one off, and the sellers hit bids all day in IBB and stocks like JAZZ and BIIB. The selling seemed relentless at times, and I wonder if this isn’t the start of a rotation out of these names, as the market seems to be back to the old stand bys like INTC IBM and MSFT.
The uptrend on IBB has snapped, so now the question is will it hold its 50 day moving avg. (red line). If it can base there, then we can expect a nice rally in the coming days/weeks. AKRX was no exception and was taken down 6%
See you in the morning.