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Market Updates

Getting Close

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As stocks continue to slide, we are quickly approaching recent support levels.

S&P 500 Daily Chart

Yesterday the S&P 500 broke down out of its little consolidation range, and the sell off has continued today. 1177, the 61.8% retracement level, was the place the S&P 500 found support on 7/11/01, and is trying to hold that level again today. The stochastic hints that we have a little more room to the downside, so it shall be interesting to see if we hold this level.

Biotechnology Index Daily Chart

The Biotechnology Index (BTK.X) is also perched right at support. Today's 4% drop has pushed BTK below the 61.8% retracement bracket, but another level of support can be found at 495, a series of previous lows. The top of BTK's double bottom pattern at 473 should also provide some more support if needed. Based on the quantity and quality of declines in biotechnology stocks today, BTK is going to need all the support it can get.

Myriad Genetics Daily chart

Myriad Genetics (NASD:MYGN) had been trying to consolidate around $40, after losing the 61.8% retracement level at $50. Today's $2.56 drop has drop the stock below that level, and support can be found at..ummmm...errr..$30.75. I guess that's why it's on Option Investor's put list, and not the call list.

Jeffrey Canavan
Assistant Analyst

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