Stock Market Commentary: We have life!
If you ignore the continued lackluster action in large caps there was a modicum of joy with a significant resistance line break in the semiconductor index. This help push the Nasdaq above its 50-day MA and kept the Nasdaq 100 above its 50-day MA.
The semiconductor index is not totally out of the woods with reaction highs at 224.59 and 236.12 to be breached; but if the latter is surpassed it would leave a clean run to the 200-day MA.
Don't underestimate the importance of the semiconductors as a leading index in the early recovery phase from a recession. While I am not suggesting the economy is going to turnaround tomorrow it is good to see some respectable demand from investors for this sector (look at on-balance-volume for the semiconductor HOLDRs (SMH)). Unfortunately, my personal semiconductor purchase in September jumped the gun leaving me sitting on a loss; but it is acting better now than it has in a long (long) time.
Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, market alerts and stock charts website
The semiconductor index is not totally out of the woods with reaction highs at 224.59 and 236.12 to be breached; but if the latter is surpassed it would leave a clean run to the 200-day MA.
Don't underestimate the importance of the semiconductors as a leading index in the early recovery phase from a recession. While I am not suggesting the economy is going to turnaround tomorrow it is good to see some respectable demand from investors for this sector (look at on-balance-volume for the semiconductor HOLDRs (SMH)). Unfortunately, my personal semiconductor purchase in September jumped the gun leaving me sitting on a loss; but it is acting better now than it has in a long (long) time.
Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, market alerts and stock charts website