The markets continue to back peddle, and the Russell 2000 and Biotechnology Index have dropped into the red. Semiconductors are still the best sector, but oil service stocks were trying to close the gap.
Oil Service Index Daily Chart
The Oil Service Index (OSX.X) got a two-week reprieve from its horrendous sell off, but once again this sector looks to be moving lower. This week's slide was temporarily was temporarily halted by the House approving a bill that would open up Alaska's Artic wildlife refuge to oil and gas drilling. As the realization that the bill will have trouble passing the Senate begins to take hold, the index is giving back most of today's gain. That could lead to the index dropping to test support at 82. As oil inventories fluctuate, OPEC production cuts come to fruition, and this bill bounces around the Senate, the oil service index may bounce around between 94 and 82.
Healthcare Index Daily Chart
Sticking with the political theme, the Healthcare Index (HCX.X) is selling off for the second straight day as the House plans to vote on patient's bill of rights legislation. On Tuesday HCX had broken through resistance and looked poised to move higher, but that trend quickly reversed. Now the sector could be going into consolidation mode, or heading back down to test 796.