We head into the second half of the session with the broad market indices showing a slight downside bias. The S&P 500 (SPX) and Dow Jones Industrial Average (DJIA) are closer to breakeven while the Nasdaq Composite (COMP) and Russell 2000 (RUT) are weaker.
The sector action is, once again, dominated by commodity corner. The Amex Gold Bugs Index (HUI) is taking the lead as it surges more than 6%. The US Oil Fund (USO) is up nearly 4%. The Oil Service HOLDRS (OIH), Oil & Gas Index (XOI) and streetTRACKS Gold (GLD) are also strong.
As far as the action in gold stocks goes, I still keeping in mind what I said Friday about an oversold bounce. The Amex Gold Bugs Index (HUI) is now beginning to bounce out of its oversold condition but still has a bit of room before it bumps into the overhead resistance.
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