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Disk Drives are the one sector that has managed to fight its way into positive territory, up 0.58%.

Disk Drive Index Daily Chart

Disk Drives (DDX.X) are trying to keep a six day winning streak alive, and fight through resistance at 90. This index went through a similar run back in late June, but was turned back by the 50-day moving average. If DDX can fight through this level, it can test resistance at 96, hopefully with better results than the attempt in May. Of course the stochastic is saying this sector is overbought, and will need to pullback/consolidate before moving higher, but today's strength is encouraging.

Hutchinson Technology Daily Chart

Overbought or not, Hutchinson (NASD:HTCH)is one of the strongest stocks in this sector, gaining 18 percent over the past seven days. HTCH has spent most of the year below $18, but this recent move has propelled the stock above that level, as well as the 50% retracement bracket at $19.23. $20.60 is the next resistance test, but remaining above $19.23 if the rest of the market continues to decline would also be a sign of strength.

SanDisk Daily Chart

If Hutchison is the leader of this group, perhaps SanDisk (NASD:SNDK) will play follow the leader. SNDK has broke its downtrend, but is still stuck in its base between $21 and $30, Today the stock has snuck above the 50-day moving average, but has a two month downtrend to deal with.

Since we don't talk about this sector often, some of the other stocks in this sector include ALAN, CPCI, DCSR, DRAM, DRXR, DSS, ECCS EMC, EXBT, FLSH, HIL, HTCH, IOM, IVAC, KMAG, MTIC, MXO, NSO, OVRL, PRCM, PRVO, QBAK, RDRT, SNDK, SOS, STK, TRCD, VIXL, WDC, ZOOX.

Jeffrey Canavan
Assistant Analyst

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