Tuesday, May 19, 2009

Stock Market Commentary: Semiconductors Have The Best Of It

In what was a mixed day for the averages; slightly up for the Tech averages, slightly down for Large Cap indices. The only index to emerge with any credit was the semiconductors. In what was a stall-out at the 20-day MA yesterday gave way to a respectable breakthough today.


Even with respect to relative strength, the semiconductor index started to outperform the Nasdaq 100 once more. The question is what form will this rally take? The ascent from March has broken but a new trending opportunity exists using the May low as part of a new trend from the March low. The 50-day MA becomes the best place for a trailing stop.

Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, stock charts, watchlist, multi-currency portfolio manager and strategy builder website. Forex data available too.

 
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