Morning Report – April 23, 2014
The bounce away from the 4000 level on the NASDAQ continued yesterday on light volume. European markets were closed due to their Easter holiday which, I assume, contributed to the lack of volume in U.S. stocks. Biotech and health related stocks including pharmaceuticals showed some life, but these groups remain in a downtrend. The pharmaceutical group is close to breaking past resistance, but the biotechnology group has a lot of damage to repair to break out of its current downtrend.
The oil and gas exploration and production group remained strong, but it may be approaching exhaustion levels. This is a large group that has moved up over 18% since beginning of February and is due for a rest. If oil prices continue higher, stocks in this group will probably follow oil’s lead, but oil is trading at a short-term resistance level right now. Resistance means little if the situation in Ukraine heats up, but both oil and the expiration of production group have had nice runs and may need some time to regroup. Read Full Report