A sucker punch for the semiconductor index took much of the gloss off end of day buying. This major breakdown in semiconductors will likely end whatever hope the NASDAQ and NASDAQ 100 had at sustaining their rallies. It may only take days, maybe weeks for weakness in the semiconductor index to spread to the tech indices (and eventually to the other indices) - but the worst looks inevitable. Bulls will look to the strong finish as a sign of strength, but even this looks to be a gloss based on the lack of conviction from the semiconductor index. Volume climbed to register across the board bearish distribution - another negative. As for the individual indices, the NASDAQ gave up Tuesday's breakout while the
Dow and S&P finished right on resistance - not the kind of form which makes for bullish optimism. It may be enough to switch my third month of bullish optimism back to a cash-is-king opinion. Subscribers should look to my cash:equity exposure to get a better idea of my opinion on the market.
The Trade Ideas scan was reasonably bullish with a "Top-8" list done in 3 minutes and a "20-appearance" list in 4 hours and 48 minutes.
If you would like to try a full version of the Trade-Ideas software, follow this link for a free 7-day trial.
If you are interested in knowing what I do with the "Top-8" and "20-appearance" data I have prepared a report here.
Trade Ideas
