Major averages finished near breakeven on slightly higher, near average volume. SPDR gold ETF GLD continues its bounce on successively lower volume. Whether it is gold putting in major lows or the start of lower lows remains to be seen. Gold can be heavily manipulated so is often difficult to predict until it completes and breaks out of any existing base as can be seen since it started on its bull run in 2001.
The leading biotech sector got hit when AMGN's earnings report disappointed. Other stocks such as CELG, BIIB, REGN, and MDCO also fell as a result. When leading stocks get hit, it is a sign of market weakness. Of course, any such weakness often gets propped up by quantitative easing, and yesterday's action was no different as it showed institutional money flows into the market despite a weaker S&P 500 at times during the trading day. This action underscores a market that may be more likely to find its footing and head higher as it has done before.
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