Market overview
Both the Nasdaq and S&P 500 have regained major moving averages over the past two days. The S&P currently has relative strength over the tech-heavy Nasdaq, but not by much.
Even small-cap stocks have powered up and reclaimed their moving averages, which is a bit surprising considering how weak the Russell 2000 has been on a relative basis.
Now that the major indexes have pushed back from key resistance levels, we need to see constructive action continue as the rotation among leaders continues.
Healthcare stocks continued to perform well this week, with a focus on biotechnology, pharmaceutical, and medical device stocks. Also, many of my past leaders have recovered to varying degrees. Some people build a base and continue to move higher, but many don’t.
If the major indexes can sustain above the major moving averages while the rotation continues and setups begin to evolve, that would be enough for me to start adding back exposure.
index
The Nasdaq closed above key resistance levels this afternoon. Let’s see if the healthy behavior continues.
The S&P 500 closed above key resistance levels this afternoon. Let’s see if the healthy behavior continues.
The Russell 2000 has shown surprising strength over the past few days, considering its relative weakness.
DOw has followed other major indexes in rallying over the past few days, closing above all major moving averages.
focus list
TER has successfully retested its all-time high and looks poised to move higher.
FROG is a potential new leader in a software group that has shown relative strength recently.
Although HOOD is still trading below the important 50-day SMA, it appears poised to reclaim this important moving average soon.
AMGN is a biotech company that is popular with institutional investors, and it appears to be poised to hit new all-time highs.
TEVA appears poised to move towards new 52-week highs from here in the next few business days.
HALO is another high-quality biotech company that forms the right side of a constructive base, not far from new all-time highs.
