Small gains keep rally ticking over

Yesterday delivered small gains which kept the rally chugging along but there wasn't much to add on today's action.

Probably the most important action was the break of the 'bull trap' in the Semiconductor Index. The 200-day MA has been comfortably breached and now the index has to work against Fall 2018 supply. This move above the 200-day MA should help the Nasdaq and Nasdaq 100 in their 200-day MA challenges.

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Russell 2000 adds a little bullish gloss

There wasn't a whole lot to add today's action as 200-day MAs dominate near term action. The only index which offered a little kicker was the Russell 2000; it posted a small gain which left it nestled against declining resistance. It has the look of an index which wants to break out, but it's not there yet.

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Small gains help keep indices near 200-day MAs

Market reversals off 200-day MAs were stalled by Friday's low key buying. The Dow Jones Industrial was the one index which was above its 200-day MA heading into Friday and ended the week with a bullish hammer right on its 200-day MA.

The Dow Jones Index had already cleared declining resistance at the end of January prior to breaking through its 200-day MA. To help with 200-day MA support there is the fast approaching 20-day MA. Collectively, there is a potential buying opportunity for a push to 26,300 (the last October swing high), stops on a loss of Friday's low.

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Semiconductors kick on as bounce reaches extremes

This bounce which kicked off in December has reached levels which are getting rich for many but not for the Semiconductor Index.

The Semiconductor Index gapped higher which keeps it hugging the channel resistance line but also offers a buffer down to support; today's action registered as a breakout. Technicals are in good shape and relative performance is good.

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