Stocks are hovering near unchanged levels this morning as the three major market averages have the Dow Industrials (INDU), S&P 500 (SPX.X) and NASDAQ Composite (COMPX) all showing fractional gains. Even the smaller cap Russell 2000 Index (RUT.X) is showing just fractional gains this morning.
Sector action has the Biotech Index (BTK.X) 369.86 +2.19% leading this morning's sector winners as this group gets a bounce from lower end of regression, most likely due to some bears coming in and further locking in gains after last week's 10.9% decline.
Biotech Index Chart - Daily Interval
Action in the Biotech Index (BTK.X) looks like short-covering and that's it. With this group of stocks in "oversold" conditions from its bullish % reading at 14.63%. That combined with the BTK.X at the lower end of regression, most likely has sector bears locking is some gains again today.
For any type of "rally" to take hold and continue in the technology are, tech traders might want to keep an eye on the GSTI Software Index (GSO.X) 120.02 +1.36%. Here we see a tech group that is hovering right at its mid-point of regression. To perhaps spark a rally in tech, look for a GSO.X move above last week's highs of 122. This group of stocks held up "relatively" well as it relates to broader technology getting hit to the downside. Sector bellwether Microsoft (NASDAQ:MSFT) $52.81 +1.59% continues to trade rather strong again today and trying to assert itself once again as a "leader" that could stimulate some short-term bullishness (a couple of session) in technology. According to Dorsey/Wright and Associates, the Software sector is "oversold" at 21.01% bullish, and has not yet reversed into a column of X. Microsoft (MSFT) is one of the stocks in the software group still showing a "buy signal" on its chart. That however would be negated with a trade at $49.