VM Ware and Salesforce.com Lag Early
This morning, the major stock indexes are all trading higher as the U.S. Dollar Index remains at the lows of the session. The rally today is broad based with early strength in energy, commodities and technology. Two leading technology stocks are not participating in the morning rally and they are Salesforce.com Inc.(NYSE:CRM), and VMWare Inc.(NYSE:VMW).
Salesforce.com Inc.(NYSE:CRM) is a leading application software company that has been very strong as of late. The stock made a new 52 week high on May 26, 2011 at $153.99 a share. The stock remains very strong on the daily chart at this time, however, it is short term overbought and may need to pullback or consolidate. Traders can watch short term intra-day support around the $149.00 area and more around the $147.90 level.
VMWare Inc.(NYSE:VMW) is another leading technology stock that is trading lower on the session this morning. This stock stock is trading just below its 52 week high of $99.19 a share. This stock remains above its 20 and 50 moving averages which indicate that the daily chart trend is up at this time. Intra-day the stock is trading lower by 0.54 cents to $96.76 a share. Day traders can watch for intra-day support around the $95.75 area. There will also be more support around the $95.00 level should VMW decline further.
Traders must always be aware of stocks that fail to participate in broad based market rallies. These stocks could decline or fall further if the overall indexes decline or fade from their morning highs.