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Semiconductors Make Biggest Gain Off Support

Published 08/08/2017, 12:42 AM
Updated 07/09/2023, 06:31 AM
NDX
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US500
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US2000
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IXIC
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SOX
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Indices experienced varying degrees of buying Monday, most of it relatively small. Biggest winner was the Semiconductor Index as it rallied from converged channel, 20-day, and 50-day MA support. This was accompanied by bullish upticks for both ADX and Stochastics.

SOX Daily Chart


Beneficiaries of this were the NASDAQ and NASDAQ 100. While neither index was able to make a move above 1%, they both managed to defend support levels. The NASDAQ 100 held the earlier support channel with just MACD negative but improving.

NDX Daily Chart


While the NASDAQ defended 6,350 for an eighth day in a row, there was even a relative gain improvement against Large Cap stocks (i.e. S&P).

COMPQ Daily Chart


The S&P had a low key day: small gains and light volume kept attention away from this index. However, it's nicely primed to make another step higher and Tuesday could be the day it happens.

SPX Daily Chart


Finally, Small Caps rallied up to the 50-day MA but no further. Shorts may take a look with a stop above the 50-day MA.

RUT Daily Chart


For Tuesday, watch for a breakout in the S&P and further gains in the NASDAQ and NASDAQ 100. Any weakness will likely be felt in the Russell 2000. Watch pre-market for leads.

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