Stock Market Early Morning Insights – April 7, 2016

Biotech and Healthcare stocks continued their positive rotation on heavy volume. We have seen this coming for several days in HGSI, not only with the group movement, but with multiple VPA flags and symbols.

The volume  points of control were especially revealing as the Biotech ETFs and indexes consolidated and were building momentum as shares passed from weak hands to strong hands. Look how congested the VPOC lines are on the equal dollar weighted Biotech index. This is not unusual during a consolidation period, but you still have to wait to see which direction the index breaks. It broke above resistance a few days ago.

Energy stocks were strong with oil up 5% yesterday, and Homebuilders were also extremely strong with 24 advancing stocks to 1 decliners. The Cement and Aggregate stocks continued their strength, but the real story was in the Healthcare sector.

One word of caution. With all of this bullishness, we are not seeing supporting volume in the major indexes. Look below and you will see that the indexes traded below average volume in all time frames.

The Biotech and Specialty Pharma groups did confirm their breakouts on heavy volume. Once again, the Top 50 GIR is a good microcosm of the strength in  the market.

STOCK MARKET EARLY MORNING INSIGHTS

Stock Market Early Morning Insights is a product of Ron Brown Investing. The complete report and all the charts are produced daily before the market opens and distributed by email to subscribers. Reports published on the HGSI Blog are delayed and do not contain all the charts.  For more information about subscribing use this link. MORE INFO