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Market Updates

Profit Taking Continues

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Most of the market continued the slight pull back from Tuesday's session as the April retail sales report was disappointing and early strength in the U.S. dollar faded. The Dow Jones Industrials are down 52 points or -0.58% to 8629. The NASDAQ Composite is slipping 12.58 or -0.81% to 1527 and the S&P 500 index is down 5 points to 937.

Market internals are negative again with advance-decline numbers coming in at 10 winners vs. 15 losers on the NYSE and 12 winners for every 13 losers on the NASDAQ. Down volume is outpacing up volume on both the NYSE and the NASDAQ but selling appears moderate as has been the trend lately.

The biggest sector losers today is the SOX chip index, down more than 2% to 347, obviously putting it back under the pivotal 350 level. The GHA hardware sector is seeing some profit taking, down 1.73%. IBM is pulling back from resistance at $90 after hitting a new 52-week high on Tuesday.

Believe it or not but traders are seeing strength in the INX Internet index. EBAY, AMZN and YHOO all look terribly extended but the profit taking today has been extremely light for these three. The INX is actually positive on the day.

Also showing strength is the XBD broker-dealer index, the XNG natural gas index, the XAU gold & silver index and the BTK biotech index. Biotechs are up after Millennium Pharmaceutical (MLNM) gapped higher this morning on FDA approval for its new anti-cancer drug, Velcade, to treat multiple myeloma. The XAU index is trading higher on a $3.60 jump in gold bullion to $353.70.

The recent bombing-shootings in Riyadh have spread rumors that the domestic terrorism threat level may be raised again, which won't bolster any bullish sentiment in the markets.

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