Since semi-conductors failed to participate (as did BIX, but we covered that yesterday), let's take a look at SMH weekly chart. We closed below the September highs and right at 50 weekly MA and ex 2006 trend line resistance, now support. Even though the group was red today, it was merely a blip next to the bullish white candle we had last week. The key will be to hold today's closing level. If bulls manage that, next resistance is 36.50. Failure to stay above 35.11 sets up a test of current channel support at 34 Chart.
Semis are still underperforming this year. The DELL news will be their chance. Bulls get the ball and they better not fumble especially next week. Trading the next two days will be relatively meaningless, other than providing more opportunities to sell on strength for those investors that respect the ebb and flow related to sentiment extremes.
The daytrade set up for tomorrow is pretty easy. NQ support will be 1812/1813. Long above, short below. If we do hit weekly R1 and montly R2 between 1828/1831, you might want to consider a swing short, or at least exit all longs and wait for the dust to clear. It's a pretty serious level of resistance.
Semis are still underperforming this year. The DELL news will be their chance. Bulls get the ball and they better not fumble especially next week. Trading the next two days will be relatively meaningless, other than providing more opportunities to sell on strength for those investors that respect the ebb and flow related to sentiment extremes.
The daytrade set up for tomorrow is pretty easy. NQ support will be 1812/1813. Long above, short below. If we do hit weekly R1 and montly R2 between 1828/1831, you might want to consider a swing short, or at least exit all longs and wait for the dust to clear. It's a pretty serious level of resistance.
This entry was posted
on Tuesday, November 21, 2006 at 11/21/2006 09:34:00 PM.
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