The major averages snapped their two-day losing streak with a Tuesday rally that allowed the S&P 500 (+1.1%) to settle at its best level of the year. The benchmark index finished ahead of the Dow (+0.8%) and Russell 2000 (+0.6%), but behind the Nasdaq Composite (+1.3%).
The rumor mill was active from the early morning, starting with a Bloomberg report indicating the European Commission will propose a six-month extension for Greece. The report cited unnamed sources and was met with a swift denial from the European Commission spokeswoman, who said there is no formal proposal on the table at this time, but talks are “intensive.” Greece has become quite annoying of late.
The health care space received support from biotechnology, evidenced by a 1.6% gain in the Biotech ETF IBB +4.85. The high-beta biotech group gave a boost to the Nasdaq, and the tech-heavy index received another measure of support from chip maker names. QCOM+3.15 raised its guidance after settling an anti-trust investigation in China for $975 million while MU popped +2.74.
Crude dropped 5.5%
I added 2 new name today: KITE and ANAC, both biotechs.
Why KITE?… The stock is in a bullish falling wedge pattern and of you notice, the sell off has been on lighter volume than the 50 day volume average which os what you want to see. It has also done a good job of holding its 50 day moving average for the last 5 trading days.
Why ANAC? ANAC has been in a fairly tight trading range for about 3 weeks now. The stock appears to be under bullish accumulation and may be set for a breakout soon.
OH, BY THE WAY, THE QQQ FINALLY BROKE OUT OF THAT RANGE.
See you bright and early.