Tech is where the fun is.

I had noted back in early December how the semiconductor index was due a bounce following some heavy overselling. It responded by falling even further to January lows, but was able to stabilize and rally back to its 200-day MA. During the run to the 200-day MA it has barely paused for breath, and bullish trend strength has been steadily increasing [+DI > -DI; ADX at 30 and rising].


This boundless energy has translated into a positive 2 months for tech averages:


Money flow is very positive and the break of the 200-day MA should be enough to extend the rally a little further, as it has done in the Nasdaq 100:


But Bill over at VixandMore makes a good case for at least taking some profits off the table.


Declan Fallon is developing trading strategies, market indicators and sentiment tools for Zignals

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