Semiconductors find support at 50-day MA

It has been a tough last few days; the strong push through the 200-day MA gave way to 5-days of sharp declines - declines which pushed it below 200-day and 20-day MAs and into the clutches of the 50-day MA.

Technicals are a mixed bag. The MACD is in the early phase of a decline but the CCI has swung to a 'buy' signal (unconvincing though it looks). Stochastics are similarly mixed with a 'sell' on the intermediate time frame but oversold on the short term.

Add in the underperformance to the Nasdaq 100 with weakening trend (bull or bear) probably means this is going to drift along until bulls get their act together to break what is now 270 resistance.

Until then, don't expect any miracles from it or by association the Nasdaq and Nasdaq 100.

Dr. Declan Fallon, Senior Market Technician, the free stock alerts, stock charts, watchlist, multi-currency portfolio manager and strategy builder website. Forex data available too.

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