Wednesday, February 02, 2011

Daily Market Commentary: Markets Hold Gains as Semiconductors Break

It was unlikely markets today were going to see the kind of gains posted on Tuesday. Minor losses posted for Large Caps, Tech and Small Caps were not surprising and mostly positive. The S&P only shed a few points on very light volume.



The real winner on the day was the semiconductor index. Unlike the Nasdaq and Nasdaq 100 it was able to post a gain. A gain which pushed the index to a new closing high. This may help the Nasdaq and Nasdaq 100 tomorrow.



The only other point of note was the uptick in Nasdaq breadth. Chiefly the CCI 'buy' in the Nasdaq Bullish Percents.



And Percentage of Nasdaq Stocks above the 50-day MA



So keep an eye on the semiconductors and watch for matching breakouts in the Nasdaq and Nasdaq 100. The latter has the added benefit of yesterday's bear trap to help buyers. Longs favoured in general.

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