Courtesy of Declan.
Tech indices finished strong after they overcame the opening half hour of selling. The Fed statement was greeted favorably, although market breadth is not looking pretty. The Nasdaq still has a distance to travel to make back all of its losses, but has done well to hold up against Semiconductor weakness.
The Semiconductor Index is struggling to make inroads against past losses as the Nasdaq and Nasdaq 100 push respectable gains. I find it hard to see how this scenario can continue, but given the dominance of Google, Apple and Microsoft in the weightings, it’s easy to see how tech indices have diverged from Semis.
The S&P wasn’t able to take out yesterday’s high, but did enough to recover the morning loss. Tomorrow offers a chance to push a challenge of 2,132.
The Russell 2000 is right on former support, turned resistance. Shorts have their pick for tomorrow.
Markets need an air clearing storm of selling to reset the bull market counter. Market breadth suggests it’s coming soon, but price action continues to defy. Until then, ride the winners and don’t be afraid to take profits.
You’ve now read my opinion, next read Douglas’ and Jani’s.
