After a market correction such as the tech stocks a few months ago, it is worth searching around to see what market sectors are showing greatest strength. Attached are the charts of three such sectors which look good, as well as the Miscellaneous Industrials sector where most tech or internet stocks reside.

Energy
Healthcare
Insurance
Industrials

The energy index could be showing signs of an up trend, however it must break the 1582 high of July 1999 first before this is definitely confirmed.

Health care & Biotechnology is looking interesting. First notice the ranges:-
2616 to 3415 is 799 points
2768 to 3588 is 820 points
3060 to 3814 is 754 points

It has since rocketed up from the 3070 low and may be due for a pullback first but looks good over the medium term.

The Insurance index has pulled back to the Fibonacci level of 5054 from the run up; 3017 low, November 1994 to 8302 high in April 1998. This is demonstrated by the horizontal lines running over the chart. This index has double bottomed at the 61.8% level and since moved to form a higher top.

Finally, the Miscellaneous industrials index is interesting. As mentioned earlier this is the index where most tech or internet stocks reside. You can see how it has come back rather fast during March/April. Notice how it first came back to previous levels of the market back in 1997 and 1994. If the low of 1967 does not break then it could be interesting to see if the tech stocks do make some sort of recovery. One to keep your eye on.

Charts of the Indices should be constantly reviewed. These show the strongest and weakest market sectors. One can then look for the strongest / weakest stocks within those sectors to trade.