While I might have my suspicions about the sustainability of the underlying power propelling the SPX and Nasdaq 100, my technical work is not suspicious of the technicals driving the PPH.  Keep in mind, though, that the components of the Pharmaceutical Sector are subject to all sorts of Street and FDA scrutiny, not to mention sudden announcements from the companies themselves. Be that as it may, if the intermediate-term chart pattern could speak, it probably would tell me that the vast majority of the bad news (VIOX, etc.) is behind us, and that 2006 figures to be a positive year indeed.

Mike Paulenoff is a 25-year veteran of the financial markets and author of MPTrader.com, a real-time diary of his E-mini S&P and QQQQ technical analysis and trading alerts. For more of Mike Paulenoff, sign up for a FREE 30-Day Trial to his E-Mini/Index Futures diary, or try his QQQ Trading Diary.