Micron Technology (MU)

[JLS]

Chart of MU w SPX

The MU horizontal channel that I keep mentioning is defined by the horizontal light-orange lines on the MU chart -- one at 61 and the other at 49. I think MU roams around in that channel for many months to come. If MU breaks lower out of that channel, I could see a reason to drop the lower line down to 46.

I think it would be close to normal for MU to stay within its upper green fork because that defines the low PE that most analysts think MU deserves. At least that's an improvement over the blue fork that MU used to follow. Maybe the analysts will change their minds in the months ahead, but I don't care if they do or not.

SPX was threatening to follow its yellow fork lower, but it broke out of that today and now looks like it will follow its blue fork higher, which means I need to figure out how to draw a different down fork because there always needs to be one of those somewhere.

FWIW, SPX doesn't have far to go to hit its upper blue fork tine, then it likely turns down and pulls MU with it. In fact, $SPX just fell off its stool as I typed this (therefore not shown in the chart as I don't feel like updating it) -- the clumsy oaf.

It's a coin toss if MU closes above its SMA(50) today, but at least its outperforming the semiconductor index by a good margin today.