Morning Update - HGX , PPH, COMPQ

The Housing Index - Philadelphia (HGX) - weekly chart
One of the strongest sectors this week has been the housing index. Technicals look good. The weekly chart of the HGX shows that it is in a neutral symmetrical triangle pattern. It is in a wave 3 to 4 pullback and looks to be completing an ABC. Furthermore, the weekly HGX chart shows that it is in a failed topping pattern because it is making an irregular flat. An irregular flat occurs when wave C at 248.43 is higher than wave A at 231.61. Once we take out 275.00 we will have a full blown breakout. Once again, all indicators and oscillators are starting to turn up. This week the HGX is up 5.44% at 266.71.

The Pharmaceutical Holders ETF (PPH)- Monthly chart
I have suggested this ETF so that you can have an equity that lets you sleep at night. Ever since I have suggestedthe PPH, it has had a nice slow move up. In addition, it gives you exposure to some Dow stocks. On the monthly chart, the PPH has broken its downtrend line going back to the year 2000. The PPH continues to be in a bearish trend reversal on the Aroon indicator. Nevertheless, the PPO is starting to turn up as are stochastics. I would start looking towards this sector because there may some rotation going on as investors become more risk adverse and more defensive. I would look at Pfizer (PFE) and some large cap pharma's. Keep an eye on this sector because eventually there will be rotation out of commodities and into utilities and pharmas. So far this month the PPH is up 2.27% at $ 73.14.

The Nasdaq Composite (COMPQ)
On the weekly chart, the Nasdaq is completing its wave 3 to 4 correction in the shape of an ascending symmetrical triangle. This is a pattern that has failed on the bearish side if you look at the pattern as a failed rising wedge. Remember what fails to break down will break out. Bottom-line, the indicators are turning up and the COMPQ has taken out last week highs.