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Rather mixed

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After a modestly higher open, stocks have turned mixed with 90- minutes of trading completed.

In last night's Index Trader Wrap, one stock I thought bears that were holding short/put the indexes might want to keep an eye on to get a feel for today's bullishness was Qualcomm (NASDAQ:QCOM) $27.42 +6.56% and look for resistance near $28. This morning's session high so far has been $27.64 and perhaps hints that bulls aren't overly aggressive in the stock, or the MARKET for that matter.

I also thought QQQ bears should challenge a bearish trade in this security with a tight stop at the $22.13 level. With the QQQ session high of $21.90, a bear has yet to be stopped out.

Combining QCOM and QQQ finding some morning resistance at levels a bear wanted, current thinking is that the MARKET looks to lack buyers.

Some of this morning's tech bullishness was squalled after Salomon Smith Barney downgraded shares of chipmaker Texas Instruments (NYSE:TXN) $15.56 -8.39%. That downgrade sent the stock to a new 52-week low and perhaps had "chip-bulls" thinking twice about bidding stocks in the semiconductor group as the Semiconductor Index (SOX.X) 249 -1.29% was one of the first technology indexes to turn red.

NASDAQ-100 Index (NDX.X) 868.60 +0.3% are monitoring the Biotech Index (BTK.X) 315.19 -0.93% to get a feel for potential weakness in the broader NASDAQ-100. Yesterday, the BTK.X edged below September support of 320 and edges further lower today. Sector bellwether Amgen (NASDAQ:AMGN) $41.29 -1.74% is seeing some follow through downside action after yesterdays news that Wyeth would begin selling shares of AMGN in Q4 that Wyeth received in connection with Amgen's acquisition of Immunex. In July, AMGN filed an S-3 covering the resale. Wyeth owns approximately 98.2 million shares of AMGN (about 7.5% of shares outstanding.)

The Utility Index (UTY.X) 247 -2.2% is this morning's sector decliner after shares of electric utility Duke Energy (NYSE:DUK) $20.09 -6.2% warned on current quarter earnings and reduced full year guidance for 2002. The company also said it was cutting its capital expenditures for 2002 and 2003.

Jeff Bailey
Senior Market Technician
Option Investor


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