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Semiconductors Breakout (Again); Indices Primed to Follow.

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It was an excellent Friday for bulls with light volume the only mark against the indices. Semiconductors led the way as after much toing and froing in recent weeks the index finally made a decisive most past resistance. The breakout for the Semiconductor Index came with a solid uptick in relative performance against the Nasdaq 100, although this move should help Tech Indices follow higher.

Semiconductors Return Inside The Consolidation

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There wasn't a whole lot attached to today's action except for the Semiconductor Index. The Semiconductor Index fell back inside its prior consolidation, falling below 1,620 in a near 2% loss. The Index was able to hold on to support of its 20-day MA on a neutral doji. Relative performance turned negative but the breakout is not killed yes.

Friday's Losses Reversed But Breakouts Remain On Hold

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It was a good start to the week with Friday's losses reversed in their entirety, although trading volume was down on Friday's selling. The Semiconductor Index is closest to breaking out (for a third time) but technicals are all net bullish. It just needs to kick on after the recent back-and-forth.

Minor Losses as Semiconductors Dips Below Resistance

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Friday's selling brought with it confirmed distribution; not great, but with indices range bound the broader picture remains unchanged. Only the Semiconductor disappointed as it again was unable to follow through on its breakout. Speaking of the Semiconductor Index, while Friday's selling took it back towards its 20-day MA - reversing the breakout for a second time - but not enough to consider this a 'bull trap'.

Russell 2000 Clears 200-day MA as Indices Consolidate

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The Russell 2000 pushed above its 200-day MA as other indices had a quiet day. Although, all indices remain stuck inside their multi-year trading ranges, the Semiconductor Index is again trying to break clear. With the gain in the Russell 2000 technicals moved into a net bullish technical stance. It's still a long way from challenging trading range resistance but it has at least squeezed shorts who were perhaps banking on a support breakout in early October.

Semiconductors Breakout

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There is a potential lead out for other indices with the Semicondictor Index breaking resistance which will help the Nasdaq and Nasdaq 100 mount a challenge of resistance. Large Caps enjoyed higher volume accumulation as money flowed into defensive stocks. With the exception of the Semiconductor Index other indices are still range bound so again, the importance of up or down days won't become apparent until the trading ranges are breached. We will start with the Semiconductor Index. The index has breached 1,625 with a return to net bullish technicals.

Gains Stall After Positive Friday

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Again, everything is viewed through the window of a trading range and until this is breached it's mostly noise in a teacup. The S&P opened at its 20-day MA and rallied to just shy of 3,000 before it ran into trouble. The index eased back to its 20-day MA, leaving behind an inverse hammer, but not before the attempted rally was able to generate new 'buy' signals for On-Balance-Volume and Slow Stochastics

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