Minor Changes: Yesterday's and Weekend Comments Remain Valid

I don't want to overplay today's action as little changed in the broader scheme of things. Days like today are welcomed and help shape up swing trades for those trading in near term timeframes.

The tight doji in the S&P could be used for a swing trade; buy a break of the high/short loss of low - stop on flip side. High whipsaw risk but look for 3:1 risk:reward and maybe trail stops if deciding to go with partial profits.

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Semiconductors Breakout

It was somewhat disappointing not to see the Nasdaq and Nasdaq 100 make the break from resistance. However, the Semiconductor index did manage a breakout of 1,150. There was some weakness into the close but the fact the bearish engulfing pattern has been negated means the bearish overhang created by this pattern has been consumed.

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Still Waiting For Tech Breakout But Omens Good

Expiration Friday pushed some heavy volume through the markets but the buying wasn't enough to bring about much-anticipated breakouts for the Nasdaq and Nasdaq 100. However, Friday's action suggests all remains good for this to happen early next week. But any drop below 5,900 in the Nasdaq 100, and 6,350 in the Nasdaq has the potential to set up a cascade of (long) stop hits.

For the Nasdaq, anyone who took advantage of the channel support hit mid-August (green arrow) will be sitting pretty. I would be looking for a move back to channel resistance.

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Dow Follows S&P Breakout

It was a bit of a slow burn day. The S&P held its ground and its breakout without generating significant weakness. However, the Dow managed to post a new closing high although the percentage gain is low and volume was below average.

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