Stock Markert Commentary: Markets Pause as Semiconductors Rise

There was very little movement in any of the key indices; markets gapped down but there was no follow through to the downside from the Nasdaq, Nasdaq 100, S&P or Dow. The semiconductor index did manage to make gains up to 337 resistance and is poised to take on a leadership role if it can break through.


The Russell 2000 also sits ready to break out of a 7-week consolidation. While some 20 points away from its highs, a break will give confidence to the broader market as it will represent a shift back to speculative issues.


Relative strength has seen a significant shift through December with Small caps leading Tech leading Large Caps - the most bullish alignment for markets. Should the dollar continue to outperform then expect this relationship to continue.



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