SOX It To Me

Is the market’s move higher today for real, or just another move off a swing
low? Since I cannot predict the future with any type of certainty, and only
anticipate, I cannot say for sure. What I do know is that for any kind of broad
market rally to stick, tech — and especially the semiconductors — must be a
factor. This morning I am seeing signs of possible bullish momentum starting to
build.

 

11:43:02

Semis to lead market
higher???

The Semiconductor Index (SOX.X)
is staging an angular Rule of Four Breakout on the daily chart.
The SOX is
currently up 12.81 to 618.41.

 

This formation can often be a precursor to substantial gains when the
pattern stages a breakout.

 

 

I also like the fact the index has recaptured both the 20- and
50-day moving averages in the past four days. It just might be worth it to keep
an eye on semiconductor issues over the next few days.

Until tomorrow,

Duke

P.S. Now I enjoy a few beers at a picnic just as much as the
next guy. Here
is an example of someone who should have used some better judgement, you think?