After eight days of high-level consolidation at the high of its recent upleg off the August low at 73.09, the Pharmaceutical HLDRs (PPH) appears to be breaking out to new highs and starting a new upleg. Today's close is very important. If the majority of the breakout upmove is preserved, then I expect the PPH to climb towards 81.50/80, and then to the 82.20 area. Let's notice that today's strength represents a thrust off of the rising 200 DMA, which usually triggers very powerful upmoves. At this juncture, only a decline that breaks below 79.80 will wreck today's constructive action.



Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com, a real-time diary of his technical chart analysis and trading alerts on all major markets. For more of Mike Paulenoff, sign up for a free 15-Day trial to his MPTrader Diary by clicking here.