Markets sank Tuesday and get yourself ready for an incessant discussion in the media for the we have not had a 10% correction in…… The Nasdaq fell 1.7% today and volume has been expanding as the benchmark moves lower. It looks somewhat orderly as it now rests about 1% above the ascending triangle it took out with a 4815 pivot, which also coincides with its 50 day SMA. Would not be surprising to see a retest of that breakout and it will be very important to see how it reacts there. Being the leading index it could give us valuable clues what to expect in the short term. The S&P 500 looks worse for the wear as it undercut its its 50 day SMA Tuesday and its 2065 double bottom trigger. It went into negative territory YTD with todays drop of 1.7%, but on the bright side its string of higher highs and higher lows is still intact. This is all constructive action, but of course damage can be done to your holdings in the interim. Key going forward to me will be the action in some of the leading groups and the creme of the crop right now are the semiconductors. The SMH is on a 6 day losing streak, only its second time in the last year that has occurred. There is bifurcating action within the sector with CRUS and MXIM actin well and then your laggards will underperform like INVN, MU and INTC. INVN is lower by 40% from recent 52 week highs, MU by 24% and INTC by 16%.
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