The broader averages logged a good day today with the DJIA, S&P 500 and NASDAQ all posting at least 1% gains. The DJIA chart looks to be the strongest of the three, but the NASDAQ shows some concern by not even being able to break Fridayââ,¬â"¢s range. This conflicting action just validates the trading range that the market has been stuck in.

Sirf Tech Holdings (SIRF) has posted a strong move from the lows in the end of January to the highs in February. Over the last four trading days, the stock has had its pullback. Tuesdayââ,¬â"¢s action saw the stock sell off in the morning, but found its support at its 20-day moving average and immediately bounce on healthy volume. If tomorrowââ,¬â"¢s action breaks above the highs of today, it will validate that the pullback from the last couple days was just that.

Sirf Tech Holdings

Just to validate the action in SIRF, I took a look at its sub-industry group. Notice the strength of the trend over the last three months. Any pullback has been met with buyers pushing it to new highs.

Scientific & Technical Instruments

Even though SIRF seems to be ready for another push to the upside and strong buying in its sub-sector, the lack of harmony with the NASDAQ and to some degree the S&P 500 keeps me somewhat cautious. Continue to make sure that all stops are utilized.

Disclaimer
The article submitted to the Tiger Shark Publishing LLC is presented for informational purposes only and should not be construed as a solicitation to buy or sell securities or securities derivatives of any kind, nor serve as any type of investment advice or strategies. Actual results may differ greatly from expressed opinion. The author expresses a personal opinion and will not assume any responsibilities of the action of the reader.

Tom Incorvia is a swing trader with 18 years of experience in the financial markets.  E-mail him at tincorvia@gmail.com.