Tag Archives: SOX

US Stock Market; Bounce Upcoming?

The US stock market is negative pre-open, but don’t be surprised if we get a strong bounce soon.  It could be a trade-able bounce.  I have bought a couple items in anticipation and am watching several more.

A bounce is a bounce; a trade.  It is what happens on a would-be bounce that will be important going forward.  What will the market do at resistance?  That will tell us a lot about what this thus far mini correction will be, another quickie or something more lasting.

SPX has firm support at around 1800.

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One of the leaders, NDX needs to bottom shortly and make a ‘higher low’ to February or it is going to activate a bearish intermediate signal.

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Decision Point for the Semiconductor Index & Hence, the Market

The SOX is dropping to the 10 year support line.  We will now see what bulls are committed and what bulls are not as the market takes a moderately scary drop today.

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For perspective (always a good thing), here is the monthly view again.  It’s for all the marbles in the ‘will they or won’t they (blow off)?’ sweepstakes with regard to US stock markets.

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Semiconductor Index at Critical Resistance

1+ years ago… that was when we became alerted to the positive projections in the Semiconductor equipment sector, which meant that Semiconductor companies were ramping new inventory builds.  This had positive implications for manufacturing as a whole since the Semi’s are a canary in the coal mine.

Today the canary is at critical long term resistance.  That is all; no grand statements about what it is going to do or not do.  But we can say that if resistance holds a bear case on the markets and the economy will probably gain an ally.  If it breaks out, the measurements are noted.

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