Market Leaders Are Still Leading
12/01/2010 9:15 am EST
The major averages have been in a trading range recently, but two of the strongest sectors, the Dow Transports and the Nasdaq 100, continue to act the best while the S&P 500 keeps retesting its lows. The Transports have support at 4722, which if broken will signal a drop to 4600. The Powershares QQQ Trust (QQQQ), which tracks the Nasdaq 100, has slightly broken its short-term uptrend but is well above support at $50.85. Stocks are higher early Tuesday. If this is broken, there are downside targets at $50. The relative strength (RS) analysis indicates that QQQQ is still stronger than the S&P 500 after breaking out on September 8.
Tom Aspray, professional trader and analyst, serves as video content editor for MoneyShow.com. The views expressed here are his own.