Biotech breakout worth following as Healthcare gets stronger

The near-term picture still looks positive for US benchmark indices and while momentum has reached intra-day overbought levels, this doesn’t imply a selloff has to happen right away.  Despite some minor intra-day weakness, S&P and NASDAQ still pushed up briefly above last Friday’s peaks during Monday’s session, and it still looks possible to gain further this week with targets up near SPX 4050-75 and larger targets up near 4120.  While I do expect that recent gains will require some consolidation, this might hold off until late week ahead of a push higher post Thanksgiving into early December.  Overall, last week’s surge keeps trends positive near-term.

Value line shows strong one-year resistance directly above

While quite a few indices have begun to show positive breakouts of intermediate-term downtrends, such as DJIA, and Dow Jones Transportation Avg., there hasn’t been any such breakout in SPX, NASDAQ, nor the Value Line Geometric Average.

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