Daily Market Commentary: Semiconductors Breakout
($SOX)
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The Nasdaq finished with a second 'Shooting Star' which took some of the gloss over the heavy volume gain. In contrast to the semiconductor index, action in the Nasdaq had the look of bearish churning.
($COMPQ)
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Gains the S&P required a redraw of the rising channel. Despite the risk of churning in the Nasdaq and Nasdaq 100, there is still a good chance the rally will continue towards new channel resistance.
($SPX)
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The Russell 2000 is similarly positioned with a new rising channel. Today's gain was enough for a fresh MACD trigger 'buy' above the bullish zero line; a very positive development.
($RUT)
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For tomorrow look for consolidation and some tight trading as today's gains are defended. There is upside room for the rally to continue and given Thursday's gain put to bed the past 3 weeks of consolidation there is the potential for sidelined money to come in buying as shorts are forced to cover.
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