Software Must Remain Resolute:
The action in software this week was commendable, even more so compared to the chips. Software was a clear laggard against the semis the last half of 2019. This relationship seems to be changing as the IGV fell less than 1% this week, and has now completed 3 straight very tight WEEKLY CLOSES, all within just 1.41 of each other (CRM incredibly has CLOSED the last 3 weeks all within just 20 cents of each other). They may have to do the heavy lifting within technology if the group is to stay afloat, a big if. Stocks contributing to the comeback are SHOP, which has rallied 200 handles since the first week of last November, and is now extended above a 409.71 cup base pivot taken out on 1/6 (WEEKLY chart below). DOCU, a name that was steadfast in its strength when the overall software group was underperforming, is just 2% off its most recent all time highs (came public almost 2 years ago). Others that have acted well POST earnings, unlike semis, include NOW and TEAM to name a few. Will potential continued software strength be enough to keep technology at the forefront.