Markets began Tuesdays session with a bang but went out on a bit of a whimper. The Nasdaq sliced its early morning highs of 1% in half gaining .47% for the day. The tech rich benchmark did reclaim its 200 day SMA for the first time time this year and it looks for the moment to be avoiding a bearish MACD crossover. It needs to start getting into gear as it remains the only “big 3” index lower since January 1st with the Dow and S&P 500 up in the neighborhood of 1%. The S&P 500 added .44% Wednesday and did breakout above a double bottom with handle base. Winning sectors today were the energy, material and technology groups. The semiconductors showed some muscle today with names like AVGO and SIMO muscling higher (below is the semiconductor general AVGO and how it appeared in our Monday 3/14 Game Plan). We admired the breakout from the 147.96 double bottom with handle trigger on 3/11, jumping more than 3%. We also pointed out a good looking bullish ascending triangle as an add on point above the round 150 figure which had been stubborn resistance the weeks ending 6/5/15 and 12/11/15. That was taken out on 3/17 and retested somewhat the next few sessions and has lifted off firmly from there. Another name in the sector that as flourished and is at all time highs is SIMO. The stock is now almost 20% higher from the 33.87 double bottom with handle pivot point taken out on 3/1. This action is encouraging for the bulls, for if the Nasdaq can get its act together and join the Dow and S&P 500 in positive territory YTD this rally can have room to run and we know moves can extend longer than we think on both the up and downside.
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