SOME CONSUMER STAPLE AND HEALTHCARE STOCKS GAIN IN MIDST OF MARKET SELLOFF

AVON PRODUCTS LEADS CONSUMER STAPLES... Some consumer staples had a good day today -- possibly as a defensive measure. Avon Products was a standout performer. Chart 1 shows AVP surging to a new recovery high on good volume. Its monthly chart (Chart 2) shows the stock actually challenging its all-time high set during 1999.

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PROCTER & GAMBLE STILL RISING... PG was another winner in the consumer staples group. The daily chart shows the stock hitting a new recovery high -- also on good volume. The monthly chart shows the stock headed toward last year's high in the mid 90s.

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WELLPOINT STILL CLIMBING... Wellpoint is another healthcare winner. The daily chart shows the price rising well over its 200-day average. The weekly chart shows WLP hitting a four-month high.

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EDISON INTL. LEADS UTILITIES... Utilities eked out small gains today. One of the leaders is Edison International. The daily chart shows the utility leader closing at a new recovery high -- on good volume. The weekly chart shows EIX on the verge of exceeding its high set last August.

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STOCK INDEXES BREAK INITIAL SUPPORT... The major stock averages suffered some short-term chart damage. The Nasdaq fell below initial chart support at 1350 and ended right on its moving average lines. (It's usually not a good sign when an index falls below a previous breakout point). The daily MACD lines turned negative -- but just barely. Breadth was bad. Selling in the SOX Index also had a negative impact on the technology sector. Over on the big board, the NYSE Composite Index fell back under its 50-day average. Breadth was negative there as well. And, volume advanced as prices declined. The day's intermarket picture wasn't good. The dollar fell, bonds rose, gold and oil rose. Sectorwise, tobacco stocks and semiconductors were among the day's biggest losers. Global markets were also very weak.

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HONG KONG HITS FIVE-YEAR LOW... While stock markets in Asia and Europe has losses of 3% and 4% respectively, Hong Kong suffered the most chart damage. The daily chart shows the Hang Seng Index falling under its October low. The monthly chart shows the Hang Seng falling to the lowest level since 1998. Local health concerns may have contributed to today's sharp fall in Hong Kong.

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