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A slow move higher

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It's been a rather "slow" session for the major indexes, but as we approach today's close, but gains in the Drug Index (DRG.X) 349.64 +3%, Disk Drive Index (DDX.X) 107 +2% and Gold/Silver (XAU.X) 81.72 +2.96% seem to have been enough to get the broader S&P 500 Index (SPX.X) 1,014 +0.3% back to a session high, which we're now just off of at 1,014.82.

A notable new 52-week high in the Disk Drive Index (DDX.X) come from component SanDisk (NASDAQ:SNDK) $38.95 +6% after the company announced it and Sony (NYSE:SNE) $29.66 +2.02% signed a cross licensing agreement that expands the scope of their memory stick cooperation. Based on the agreement, SanDisk and Sony will further promote Memory Stick products throughout their respective industries. The news has also sparked gains in fellow Disk Drive Index component M-Systems Flash Disk (NASDAQ:FLSH) $11.60 +6.2%.

On a broader scale, market internals have steadied since the 01:00 Update with the NYSE reporting decliners still outpacing advancers by an 18 to 14 margin, with 357 stocks advancing to new 52-week high compared to 4 stocks at new lows. NASDAQ breadth, which edged positive at 02:00 PM EST is improving modestly with advancers outnumbering decliners by a slim 159 to 153 margin. 244 stocks have traded new highs compared to 2 stocks having traded new lows.

The Dow Industrials (INDU) 9,333 +0.17% holds an 14-point gain, while the tech-heavy NASDAQ-100 Index (NDX.X) 1,243 +0.13% is just 4-points off its morning high, with its Tracking Stock (AMEX:QQQ) $30.89 +03% gaining 2 cents after a spike higher at $31.11 earlier this morning.

The Semiconductor Index (SOX.X) 373 +0.28% has clawed its way back into positive territory, while early sector weakness in the Biotechnology Index (BTK.X) 485.29 -0.25% begins to wear off after a late-morning dip to 477.80.

HMO stocks as depicted by the HMO Index (HMO.X) 733.21 +1.29% continue their torrid climb higher to a 5th consecutive all-time high in as many sessions. Share of UnitedHealth (NYSE:UNH) $104.98 +1.90% gapped to an all-time high this morning after trading a 52-weeker on Wednesday of last week, while Oxford Health (NYSE:OHP) $44.39 +2.39% looks to play some catch up day by day as it now approaches a relative high of $45.18 set on October 22nd, which I think is the near-term level of technical resistance that stands between the 52-week high of $51.94, I think OHP will be destined to test before the leaves fall from autumns trees.

(Disclosure: I currently hold bullish positions in OHP)

Jeff Bailey

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