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Semiconductor Breakout But Trading Volumes Tepid

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Not a whole lot to report for today although the Semiconductor Index did register a breakout. This was supported by a relative performance gain against the Nasdaq 100, and this should help Tech indices maintain their market leadership. The only disappointment was the maintenance of the 'sell' trigger in the MACD.

Low Key Losses Change Little

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Aside from the Nasdaq which broke through rising channel support, other indices remain caught along breakout support.  The Nasdaq is on a 'sell' trigger in the MACD and a relative underperformance against the Russell 2000, but it has already outside of its rising channel where an opportunity to accelerate losses has not yet been taken. 

Nasdaq Breaks from Rising Channel

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There has been a slowing of the rising trend in the Nasdaq, to the point it has dropped outside of its four month rising channel. This should not be viewed as outright bearish, but simply a slowing of the advance - and probably a sideways shift in a trend consolidation.  The edge breakout in the S&P has drifted back to support and will find itself under threat should such losses continue in the Nasdaq. Selling volume has been light and the strong accumulation trend in On-Balance-Volume has not been adversely impacted by this selling. The index - as with the Nasdaq - is underperforming relative to the Russell 2000, which may help it in the long term when money again cycles back to defensive stocks.  The Russell 2000 has been trying to clear its base (within a base) but has so far struggled. Trading volume has fallen off a cliff compared to the volumes from March so if a breakout is to stick we will need to see much stronger buying volume. On a positive front, On-Balance-Volume is st

S&P Nudges Breakout

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The S&P didn't break resistance with any great fanfare and the move lacked volume, but a breakout is a breakout. Technicals are in good shape with bullish momentum particularly strong, and a three month rising accumulation trend.

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