Does this Market Have More Legs to Run?

WEEKLY MARKET ANALYSIS

Stocks opened modestly lower but the decline reversed and accelerated during the day into the close. The Dow Jones Industrial Average ETF DIA was up 1.64 points on the day and closed at 254. For the S&P 500, there is support near 2717 and 2702. Resistance levels are currently at 2747 and 2762. A little worry about bonds creeping up with stocks so stay frosty.

GLOBAL ASSETS UPDATE

TWELVE SECTOR ANALYSIS

VOLATILITY UPDATE

On Wall Street, 9 of the 12 major market sectors are seeing green today. The biggest gainers are Industrial (XLI), Consumer Discretionary (XLY), and Pharmaceuticals (XPH). The weakest sector today has been Financial (XLF) which has declined -0.5%.

The CBOE Volatility Index (VIX) is down $-0.22 going from $15.79 to $15.57 today. The ratio of puts to calls for the current at-the-money strike of $16 is below average which means that traders are favoring Calls over Puts currently.

MARKET HEAT

A NASDAQ stock with unusually high volume today is Opko Health Inc. (OPK). On the AMEX Northern Oil & Gas, Inc. (NOG) has had significant interest, and on the NYSE Estee Lauder Companies Inc (EL) has had unusual volume.

The biggest mover out of other high-volume stocks is Opko Health Inc. (OPK) which has moved down over -16% recently on volume of over 33 million shares. The chart below shows the performance of OPK over the last year. OPKO Health, Inc. is a healthcare company.

DARWIN OPKO HEALTH INC. FORECAST

The performance of Opko Health Inc. (OPK) will be worth watching in the near term for a number of reasons. The forecast for the coming week on OPK is for the price to go up. The correlation of OPK to the S&P 500 recently has been -0.5 which is a moderate negative correlation. Key levels to watch for OPK are upside resistance at both the $3 and $4 price points.

Trade smart,

Paul "Bulldog" Hudson, Chief Investment Officer
Darwin Investing Network