Click
to Enlarge
The S&P Information Technology Index led the market up to the January 2010 highs and even though this index made new highs in April, the RS analysis indicates it was no longer outperforming the S&P 500. The 40-week MA has been tested over the past three weeks but has not been overcome and the RS is locked in a trading range. Cisco Systems (CSCO) earnings are due out today and the stock has bounced nicely from the July lows with major resistance just below $28. The weekly OBV is positive as it is in a solid uptrend.
Tom Aspray, professional trader and analyst, serves as video content editor for MoneyShow.com. The views expressed here are his own.
