[Edit: Of course the moment I post this SMH rips, showcasing the need for objectivity with respect to price! Analysis package will still be out Sunday]
While the rest of the market has taken back the losses seen last week (very quickly I might add), we're still not seeing the strength we need to in the semis. I use SMH, but SOX is showing the same thing: lack of strength after the pullback, quite weak relative to overall equities. Here's the chart:
We had the large gap and run from Intel earnings and the sector really has led the market, especially the nasdaq, higher. With its nonconfirmations, we really need to see this pick up if we want to see continued strength in the nasdaq.
The individual components in the semiconductor space are showing mixed signals. Some names are clearly broken and starting new daily downtrends while others are mixed and have the potential to breakout. Analyzing the underlying the components and where they are headed can be key when forecasting a large sector.
Over the weekend I'll be doing an in depth technical and structural analysis of the semiconductor market. I'll be releasing it in pdf form and expect it to be the basis for my strategy in the space going into the next quarter. This will be given out to my subscribers along with the weekly report, but if you're interested in the report as well as how I frame my theses in the markets, you can request a copy. I'm going to limit it to the first 250 so I don't saturate the market with my analysis.
To receive the free report, just enter your email in the form at the top, and I'll send it out this Sunday afternoon.