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$SOX 7yr TL - 7mo Trading Range & Market Commentary:
Qs 44.38, SPX 1440.16 Intra resistances
DOW 12541.51, and Nasdaq 2461.49 Higher High
With a good news from Iran-Sailors issues and a good earning report by "Best Buy", market traded up in narrow range as noted yesterday that having a consolidation day and a follow-through day is certainly positive for future price advance. A caveat or a mixed message was that ISM service number was weak which could be seen that the Fed could be holding or lowering interest rates. "MSFT" was upgraded by citi, as a result it finished with 2.36%. I noted weak internals, A/D, during the mid day that market would be much weaker if MSFT wasn't upgraded. A/D finished with NYSE 1.14 and Nasdaq 0.83 which is not strong considering "BBY" and "MSFT" upgrade news. We will see narrow market leadership during this advance; therefore, individual stock selection will be more challenging.
Qs 44.38 and SPX 1440, the intra-highs, are the intra resistance which were the top of the recent "W" - "Cup & handle" formations shown on 60m charts. The narrow range consolidation which we have seen today is positive. Note that SPX, Nasdaq, and DOW made intra higher-high above the recent Mar '07 high -- this is a good technical signal.
With "BBY" news, KLAC-TXN-AMAT finished with good gains. If market hears another good news like "BBY", $SOX/SMH will break out to upside from "7mo Trading range".
$SOX-SMH traded in a 7-mo trading range after 3-mo rally when I alerted cyclical reversal in Jul 2006. $SOX and SMH have "7yr down TL" resistance as well as 7-mo trading range resistance; therefore, breaking above the current trading range will be significant. I posted $SOX 4yr cycle chart during Jul 2006 as a part of $SOX reversal call analysis. As shown below on the $SOX monthly chart, it is trading at the 7yr down Trendline.
In Summary: The "Breakout Retest" Scenario market action which I commented is progressively confirmed by the recent price actions. The "Breakout Retest" shown on the weekly charts projects filling the runaway-gaps, retesting the Feb 07 highs, and, technically, making new highs. I will be reassessing market strength at the "Double Top" to project further price advance to new highs.
Qs 44.38, SPX 1440.16 Intra resistances
DOW 12541.51, and Nasdaq 2461.49 Higher High
With a good news from Iran-Sailors issues and a good earning report by "Best Buy", market traded up in narrow range as noted yesterday that having a consolidation day and a follow-through day is certainly positive for future price advance. A caveat or a mixed message was that ISM service number was weak which could be seen that the Fed could be holding or lowering interest rates. "MSFT" was upgraded by citi, as a result it finished with 2.36%. I noted weak internals, A/D, during the mid day that market would be much weaker if MSFT wasn't upgraded. A/D finished with NYSE 1.14 and Nasdaq 0.83 which is not strong considering "BBY" and "MSFT" upgrade news. We will see narrow market leadership during this advance; therefore, individual stock selection will be more challenging.
Qs 44.38 and SPX 1440, the intra-highs, are the intra resistance which were the top of the recent "W" - "Cup & handle" formations shown on 60m charts. The narrow range consolidation which we have seen today is positive. Note that SPX, Nasdaq, and DOW made intra higher-high above the recent Mar '07 high -- this is a good technical signal.
With "BBY" news, KLAC-TXN-AMAT finished with good gains. If market hears another good news like "BBY", $SOX/SMH will break out to upside from "7mo Trading range".
$SOX-SMH traded in a 7-mo trading range after 3-mo rally when I alerted cyclical reversal in Jul 2006. $SOX and SMH have "7yr down TL" resistance as well as 7-mo trading range resistance; therefore, breaking above the current trading range will be significant. I posted $SOX 4yr cycle chart during Jul 2006 as a part of $SOX reversal call analysis. As shown below on the $SOX monthly chart, it is trading at the 7yr down Trendline.
In Summary: The "Breakout Retest" Scenario market action which I commented is progressively confirmed by the recent price actions. The "Breakout Retest" shown on the weekly charts projects filling the runaway-gaps, retesting the Feb 07 highs, and, technically, making new highs. I will be reassessing market strength at the "Double Top" to project further price advance to new highs.
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