Semiconductors Sucked Back By Broader Market
Today was really a non-event. Friday's gains were great, but it was going to be hard to see more of the same today. This lack of action hit high flying Semiconductors after a positive gap open had made it look like another good day was in store. Other indices did very little.
Semiconductors finished with a bearish 'inverse hammer'; some may look to the mid-line of stochastics [39,1] as a confirmation of this, but I suspect the index has done enough to return net bullish, which technicals - as of today - have confirmed. Time to buy pullbacks.
The S&P didn't do enough to negate the breakdown, but the sell off wasn't enough to suggest bears have done enough to defend their short positions.
The Nasdaq finished flat inside the current trading range. There wasn't much damage done, and if Semiconductors were able to continue their advance, then a move back above 5,000 would't look so far fetched for the Nasdaq. The MACD trigger 'buy' was a positive start.
There was little to say about the Russell 2000. Today's action remained above the channel line, but below converged moving averages; a real non-day.
Again, stay focused on the Semiconductor Index. While I remain stubborn (foolish) on what I think markets need a solid 40% trim from all-time highs to reset the cyclical bull market count inside the March 2009 secular bull market low, action in the Semiconductors is suggesting this dip is about to kick on to new all-time highs. I would like to be right-side on this, but Tech indices may be about to kick me in the shin.
You've now read my opinion, next read Douglas' and Jani's.
I trade a small account on eToro, and invest using Ameritrade. If you would like to join me on eToro,
register through the banner link and search for "fallond".
If you are new to spread betting, here is a guide on position size based on eToro's system.
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Accepting KIVA gift certificates to help support the work on this blog. All certificates gifted are converted into loans for those who need the help more.
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Dr. Declan Fallon is the Senior Market Technician for ChartDNA.com, and Product Development Manager for FirstDerivatives.com. I also trade on eToro and can be copied for free.
Semiconductors finished with a bearish 'inverse hammer'; some may look to the mid-line of stochastics [39,1] as a confirmation of this, but I suspect the index has done enough to return net bullish, which technicals - as of today - have confirmed. Time to buy pullbacks.
The S&P didn't do enough to negate the breakdown, but the sell off wasn't enough to suggest bears have done enough to defend their short positions.
The Nasdaq finished flat inside the current trading range. There wasn't much damage done, and if Semiconductors were able to continue their advance, then a move back above 5,000 would't look so far fetched for the Nasdaq. The MACD trigger 'buy' was a positive start.
There was little to say about the Russell 2000. Today's action remained above the channel line, but below converged moving averages; a real non-day.
Again, stay focused on the Semiconductor Index. While I remain stubborn (foolish) on what I think markets need a solid 40% trim from all-time highs to reset the cyclical bull market count inside the March 2009 secular bull market low, action in the Semiconductors is suggesting this dip is about to kick on to new all-time highs. I would like to be right-side on this, but Tech indices may be about to kick me in the shin.
You've now read my opinion, next read Douglas' and Jani's.
I trade a small account on eToro, and invest using Ameritrade. If you would like to join me on eToro,
register through the banner link and search for "fallond".
If you are new to spread betting, here is a guide on position size based on eToro's system.
---
Accepting KIVA gift certificates to help support the work on this blog. All certificates gifted are converted into loans for those who need the help more.
Follow Me on Twitter
Dr. Declan Fallon is the Senior Market Technician for ChartDNA.com, and Product Development Manager for FirstDerivatives.com. I also trade on eToro and can be copied for free.
