Semiconductors Do All The Hard Work

Published 11/17/2016, 11:12 PM
Updated 07/09/2023, 06:31 AM
NDX
-
US500
-
US2000
-
IXIC
-
SOX
-

While Trump's election provided the catalyst to stimulate frenzied buying, it has been Semiconductors which have done most of the hard work.

Thursday's gain provided a cushion to the consolidation built up since September. Since the election result the buying in the markets has looked panicked, but action in this index looks very controlled. This is good news for Semiconductor stocks, but it should be good news for the NASDAQ and NASDAQ 100.

SOX Daily Chart

Of the NASDAQ, it's approaching resistance from September. Action in the Semiconductor Index, along with net bullish technicals, suggests further gains could be on the table.

COMPQ Daily Chart


The S&P poked its head above the September swing high associated with the downward channel, but it hasn't yet fully cleared market congestion from August.

SPX Daily Chart

Meanwhile, the Russell 2000 has been tearing away from 1,263 resistance. It has moved from 1,150s to 1,300s in a very short space of time. Some consolidation has to be on the table soon, so those looking to buy would probably be best to wait.

RUT Daily Chart


There wasn't a whole lot of action on Thursday – given what's happened since election day – but who knows what Friday will bring. Some easing feels inevitable, but if it can hold near recent highs it could set things up for a very positive end-of-year 'Santa' rally.

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.