TECHNICALS-GS

Markets continue to flop around but generally down a bit with the DJIA being the worst of the major market indexes (-15).

Market internals may be hinting at an afternoon rally showing about 300 more winners than losers with S's over N's.

Key sectors have brokers up a tad (see chart above), banks down a bit and semis unchanged. Strongest sectors include internets, retail and cyclicals. Worst include drugs, metals, software, and trannies. Oils stocks are lower on the heels of lower crude as it was due to take a rest and the outstanding numbers for XOM were probably baked in the cake.

I certaintly mention GS a lot but by the looks of the chart is probably not enough. This equity just goes up about every day as witnessed by it 57 ADX reading. ADX is an indicator that measures the strength of the recent trend and generally anything over 30 is an indication of a strongly trending stock. For a mega cap stock like GS to have an ADX reading over 50 is highly unusual. It is up about $3 today and there is not much question that it will be pulled to $200. Usually, stocks get pulled to $100 numbers but I bet the same rules apply to $200.