A Good Fight:

Healthy competition could be a good thing. Dating back to my tennis days I remember improving a lot when I was pushed by a better player. Perhaps that analogy is what is going on within the two heavyweight sub sectors within the most important technology group. And that is a win win for the markets here, as both the IGV and SMH try and vie for leadership. The SMH did jump 5% this week, on the back of some solid earnings reports. NVDA enjoyed a huge advance of 15% this week (its first double digit weekly advance in 11 months) and is now just below a 16 month WEEKLY cup base. AMAT was able to break above a long WEEKLY cup base this week rising more than 8%. For the second week in a row the SMH outshined the IGV, and ratio chart here displays the tug of war. As always search for leaders within these funds, in software SVMK could be one to watch going forward. This was the first Friday in the last 4 the Nasdaq did not reverse hard upon its lows. Perhaps Tuesday they will do just that to do what they do best and confound the most. If weakness appears have your leader watchlist ready to nibble.

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