Daily Market Commentary: Semiconductors Crack as Markets Pause

In the end it was a clean break; semiconductors gave up nearly 2% and the last hope for a bull trap went away. The nascent CCI 'buy' signal disappeared with the losses - it's looking ugly for the semiconductor index


via StockCharts.com

While trading volume rose there was little change in the end-of-day price for the rest of lead markets. The S&P finished with a small (indecisive) spinning top and remains on course to test channel support.


via StockCharts.com

The Dow touched its rising channel support


via StockCharts.com

The Nasdaq continued to toy with July support as it closed with a spinning top. But today's action in the semiconductor index suggest the breakdown is going to happen soon.


via StockCharts.com

Even if markets were to rally it's unlikely going to be enough to reverse the break in the semiconductors - and this is the worry for the markets.

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