Weekend Commentary from Fallondpicks.com
Bears will have sighed some relief as Thursday's breakouts in the tech averages [ NASDAQ and NASDAQ 100 ] reversed; the NASDAQ 100 suffering the additional indignation of a distribution day. Reversals were also experienced in large cap [ Dow and S&P ] and small cap [ Russell 2000 ] indices, but neither set of losses caused any significant technical damage. There is a swathe of support to look forward too - so Bears can't be rubbing their hands with the expectation of a big reversal, but buying this dip would be a risky proposition. The semiconductor index took a step back to its 50-day MA; there is a big void of support down to July lows, so further losses could be very damaging technically. The semiconductor index is also influenced by the strengthening bearish divergence of its MACD trigger line. Technically; the MACD trigger 'sell' holds for the NASDAQ and NASDAQ 100 - but there is no change in the other technicals; the bullish divergence in the MACD o...