The Big Picture On Those Big Swinging Semis

Chip stocks are looking
interesting in the big picture.
Much of what I’m seeing suggests a
healthy dose of support coming in across the board. 

Let’s take a look, shall we?

The SOX is bouncing from the lows of its
four-month trading range. 

Advanced Micro Devices
(
AMD |
Quote |
Chart |
News |
PowerRating)
is following
through off a surge from the lows of its six-week range and its 50% retracement
(December lows – February highs).

Micron
(
MU |
Quote |
Chart |
News |
PowerRating)
is bouncing higher off long-term
support provided by a 2 1/2-year trendline and its 1999 lows.

Finally, Intel
(
INTC |
Quote |
Chart |
News |
PowerRating)
appears to be bouncing
bouncing off that five-year trendline and 61.8% retracement I told you about in
my January
26, 2001, “Chart of the Day
.”

You won’t want to be too hasty about
dismissing the strength and potential of the rally we seem to be embarking on.

We’ll see you tomorrow,

Eddie