Daily Market Commentary: Semiconductors Gain

While recent action has focused on Small Caps, it has been the semiconductor index which has quietly advanced in recent days.  Today was a solid day for the semiconductor index, gaining over 1% as it fast approaches September's high.  The gain is also good news for the Nasdaq and Nasdaq 100, given how the rally in the Russell 2000 has stalled somewhat.

For example, the Nasdaq 100 is holding on to its breakout gap.  The 20-day MA is also fast approaching and in a position to lend support. However, On-Balance-Volume is still trending lower in a path of distribution, but a few days of heavy volume buying could reverse this trend.

The Nasdaq also has a consolidation to break from and a breakout gap to defend. Unlike the Nasdaq 100, it enjoyed a 'Golden Cross' between 200-day MA and 50-day MA, an important long term bullish trigger.

The S&P spent another day preparing to break higher, but so far it hasn't done it, despite a higher volume accumulation day.

Again, for Thursday look for bulls to push on. Markets have been resilient to every attempt by bears to drive things lower.  Until proven otherwise, bulls hold the edge.


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Dr. Declan Fallon is the Senior Market Technician and Community Director for Zignals.com. I offer a range of stock trading strategies for global markets which can be Previewed for Free with delayed trade signals. You can also view the top-10 best trading strategies for the US, UK, Europe and Rest-of-the-World in the Trading Strategy Marketplace Leaderboard. The Leaderboard also supports advanced search capability so you can tailor your strategies to suit your individual requirements.

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