SECTOR SNAPSHOTS

BIOTECH INDEX TESTING SEPTEMBER HIGH... After rallying during November and December, the Biotech Index is meeting resistance near its September high. Despite the recent rally, its relative strength line has continued to lag behind the S&P 500.

Chart 1

BROKERS TESTING OLD HIGH... Brokerage stocks are also testing overhead resistance. Chart 2 shows the Broker/Dealer Index having a little trouble at its November peak. Bank stocks recently moved into new high ground. Brokers are usually viewed as leading indicators for the rest of the market. Their relative strength lines shows that they've been market laggards since November.

Chart 2

GOLD INDEX BACKS OFF FROM HIGH... The price of gold has hit a new 15-year high. Gold stocks, however, are stalled at their early December peak. Their relative strength line also shows them lagging behind the S&P 500 over the last month. Their major trend, however, is still bullish.

Chart 3

AIRLINES TURNING UP... The Airline Index has just risen over its 50-day moving average. Its relative strength line also appears to be turning up. The airlines have been laggards in a strong transportation group.

Chart 4

SOX MOVING UP... The Semiconductor (SOX) Index has been a laggard in the technology sector since December. Over the past week, however, it's moved back up toward its old high. To restore its upward momentum, however, the SOX still needs to clear its fourth quarter peak.

Chart 5