Multiple upside momentum non-confirmations of the upleg off of the August 11 low at 73.39 to Wednesday’s high at 77.96 suggests strongly that the Pharmaceutical HOLDRs (PPH) is overdue for a correction into the 75-74 area in the upcoming days.  My work argues that a near-term peak has been established and possibly a more significant high as well that ends the entire upmove off of the 12/12/05 low at 66.

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.