Option Investor
Market Updates

Drifting Along

Printer friendly version

Stocks posted nice gains after some positive manufacturing data was released, but then proceeded to give most of that back. Now we are once again drifting higher. Certain sectors may not be able to drift much higher due to support that was broken yesterday now acting as resistance.

Software and Retail Index Daily Chart

Software is today's best performing sector, and is up 1.82%. Any further gains might be limited by support being broken at 158 yesterday that is acting as resistance today. Software, and most sectors for that matter, are approaching oversold levels, but based on software's relative weakness compared to the Nasdaq Composite, it might bounce less than other tech sectors.

PeopleSoft Daily Chart

PeopleSoft (PSFT) is largely responsible for the performance of the Software Index today, and is the best performing stock on the Nasdaq-100. The stock has gained $2.37 today, but has stalled right at $34.31. This is last weeks low that was broken yesterday, as well as a 50% retracement level. That resistance level may contain the stock for today, and more resistance is $3.50 away.

Symantec Daily Chart

Symantec (SYMC) is also trying to make a move, but is coming up short. SYMC first has to move above the 50-day moving average, and then deal with resistance at $44. The stock isn't actually more overbought that oversold, limiting its upside potential.

Jeffrey Canavan
Assistant Analyst

Intraday Update Archives