HIGH TECH AND BIOTECH LEADERS -- MARKET HAS STRONG PRICE DAY BUT ON LOW VOLUME
HIGH TECH LEADERS... Charts 1 through 3 show three of today's standout high tech performers. Earlier today we showed Cisco breaking out to a three-month high. The volume bar shows today's volume to be the heaviest since the start of April. Cisco appears headed toward a challenge of its January high. Nextel Communications has already exceeded that chart barrier. Chart 2 shows that communications stocks closing over the highs of the past six months accompanied by strong volume. That puts NXTL at a new 52-week high. Chart 3 shows Veritas Software trending higher on good volume. VRTS is trading at a ten-month high. High techs weren't the only Nasdaq winners today. Biotechs also had a very good day.
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BIOTECH INDEX BREAKS RESISTANCE LINE... The AMEX Biotech Index rose to a three-month high today and was one of the day's top performers. More importantly, the BTK broke the resistance line drawn along the August/November/January highs.
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BIOTECH LEADERS... It just so happens that three of today's biggest percentage gainers in the Biotech Index also happen to be the most heavily weighted stocks in that index. Millennium Pharmaceuticals carries the most weight. Its chart shows a strong advance over the past week. The relative strength line along the bottom also shows it leading the BTK higher. Human Genome Sciences carries the second heaviest weight in the BTK. HGSI has just recently broken through its 200-day average, and is now challenging its December high. It too shows rising volume and a rising RS line. The third biggest biotech stock -- Applera Corp. -- is just starting its run to the upside. It has just broken through chart resistance at 9.5 on very strong volume. Its RS line has just turned up as well. It looks like CRA is playing catch-up with the others.
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DOW'S PRICE UP, VOLUME DOWN... While all the major averages saw nice gains, the Dow Industrials had the biggest percentage day. The day's gain of 165 points puts the Dow right up against the 8500 barrier for the fourth time. Breadth figures were good today. The only thing missing was volume, which was disappointingly light. Hopefully, an upside breakout by the Dow will attract more trading activity.
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