Daily Market Commentary: Semiconductors Crack as Markets Pause

In the end it was a clean break; semiconductors gave up nearly 2% and the last hope for a bull trap went away. The nascent CCI 'buy' signal disappeared with the losses - it's looking ugly for the semiconductor index

($SOX)

via StockCharts.com

While trading volume rose there was little change in the end-of-day price for the rest of lead markets. The S&P finished with a small (indecisive) spinning top and remains on course to test channel support.

($SPX)

via StockCharts.com

The Dow touched its rising channel support

($INDU)

via StockCharts.com

The Nasdaq continued to toy with July support as it closed with a spinning top. But today's action in the semiconductor index suggest the breakdown is going to happen soon.

($SPX)

via StockCharts.com

Even if markets were to rally it's unlikely going to be enough to reverse the break in the semiconductors - and this is the worry for the markets.

Follow Me on Twitter

Build a Trading Strategy Business in Zignals



Dr. Declan Fallon, Senior Market Technician for Zignals.com, offers a range of stock trading strategies for global markets, also available through the latest rich internet application for finance, the Zignals MarketPortal or the Zignals Trading Strategy MarketPlace.

Zignals offers a full suite of financial services including price and fundamental stock alerts, stock charts for Indian, Australian, Frankfurt, Euronext, UK, Ireland and Canadian stocks, tabbed stock quote watchlists, multi-currency portfolio manager, active stock screener with fundamental trading strategy support and trading system builder. Forex, precious metal and energy commodities too. Build your own trading system and sell your trading strategy in our MarketPlace to earn real cash. Read what others are saying about Zignals on Investimonials.com.
JOIN US TODAY - IT'S FREE!

Popular posts from this blog

Nasdaq primed for breakout

S&P "Bull Trap"?

"Black Candlesticks" are a concern for the S&P and Nasdaq

Archive

Show more