I have modified the semiconductor chart to show a consolidation triangle in a pattern very similar to small caps.
I like where the strength lies in the market - it just needs to show its hand more. Just look the at buying volume in the Semiconductor HOLDRs (SMH); sideways market with huge volume spikes (barely a squeak to the downside) is classic Big Money buying. Semiconductors usually show form during the early economic recovery phase. They are not there yet but this action is good.
Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, market alerts and stock charts website