Thursday, January 18, 2007 10:52:52 PM
The NASDAQ and the Semiconductor Index ...
Friday, January 12th.
http://www.stocktiming.com/Friday-DailyMarketUpdate.htm
There is a strong support correlation between the SOX Semiconductor Index and the NASDAQ 100 because of the
number of high tech stocks in it.
While many are excited about the NASDAQ's recent action, it is important to watch the Semiconductor Index (SOX).
Its multi-year chart is below and yesterday, it was at a VERY important testing level. Note how the SOX has
been in a down trend since last March. I drew a resistance line on that down trend with red arrows.
Since mid November, the resistance line has been tested 3 times. The first and second test resulted in pull backs
on the SOX. Yesterday, it tested that resistance again and closed below the resistance at the end of the day.
This is a critical test that will likely continue for the next few days. If the SOX can break through to the upside
and hold a trend for 7 to 10 days, then that would be a new positive for high tech stocks and the NASDAQ 100.
This may not be as easy as it sounds, because our monitoring of Leadership stocks shows that they have been
losing strength as a group during the past 3 days. Unless this trend reverses, it could spell real trouble for the
markets within the next 2 to 3 weeks.
Friday, January 12th.
http://www.stocktiming.com/Friday-DailyMarketUpdate.htm
There is a strong support correlation between the SOX Semiconductor Index and the NASDAQ 100 because of the
number of high tech stocks in it.
While many are excited about the NASDAQ's recent action, it is important to watch the Semiconductor Index (SOX).
Its multi-year chart is below and yesterday, it was at a VERY important testing level. Note how the SOX has
been in a down trend since last March. I drew a resistance line on that down trend with red arrows.
Since mid November, the resistance line has been tested 3 times. The first and second test resulted in pull backs
on the SOX. Yesterday, it tested that resistance again and closed below the resistance at the end of the day.
This is a critical test that will likely continue for the next few days. If the SOX can break through to the upside
and hold a trend for 7 to 10 days, then that would be a new positive for high tech stocks and the NASDAQ 100.
This may not be as easy as it sounds, because our monitoring of Leadership stocks shows that they have been
losing strength as a group during the past 3 days. Unless this trend reverses, it could spell real trouble for the
markets within the next 2 to 3 weeks.
Join the InvestorsHub Community
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
