4/6/07 Weekend Review: Nasdaq, SP 500, SOX, BTK, CMGI, ICGE, SFE

The 1st week of April turned out to be a great week! The major indices continued to rise and are looking like they might soon re-test the highs set in February. Both biotechs and semiconductors made solid moves up and certainly helped to push the major indices higher.

Let's take a look at the Nasdaq:
Nasdaq had a nice day on Thursday to close out the week (so did SP 500 and the DOW), showing that buyers are still in control. The 20-day MA has crossed above the 30-day MA, but, we still need to see that 30-day MA turn up. The Nasdaq needs to now catch up with the upper BB; this should enable the 30-day MA to turn up!

The semiconductor sector is getting more and more positive attention. The SOX made 3 nice, consequtive, days of advances to close above 475. Now, the MACD is almost positive and the RSI is rising nicely. Notice that the upper BB is not so far away!

The biotechs are picking up a lot of momentum in the past few weeks. Let's take a look at BTK, the AMEX Biotech Index. BTK closed on Thursday above the resistance at 790! It is now in the clear to go even higher. The MACD is also rising nicely and the strength is high, as shown by the RSI. If fact, BTK is very close to re-testing its all-time high set in 2000(see the 10-year chart)!!

Another sector that looks interesting to me is the internet incubators. A lot of people have probably forgotten these since 2001. But, they seem to have recently gotten some renewed buying interests. CMGI, ICGE, and SFE have all made some nice upward movements lately. There's even an interesting article from Forbes about them.

So, the mjoar indices are in striking distance to re-test the February highs; the biotechs have taken off; the semiconductors are starting to move up (and, they need to break out of their multi-year range; see my post on 3/31/07); the commodities are still strong. If we see the buyers continue to push the major indices up and allow them to catch the upper BB, we might have new highs to look forward to in the next couple of weeks!