Dampen The Noise:

The facts that are making headlines these days are true, simple as that. Breadth has been weak, we have not had a 5% correction in about 200 days, the nascent, possible suspect leadership with utilities, real estate and, staples shining over the last one-week period. Add to that with the chart below showing bearish RSI divergence. Bears would be correct to point all these out, and negative headlines garner attention and sell newspapers. But the only problem with all the negative statements above, they only matter if PRICE confirms. So far they have not, and the Nasdaq is just 2% off all-time highs. Now that can change in a hurry, but Tuesday the Nasdaq bounced off its rising 50 day SMA after the breakout above a bullish ascending triangle pivot of 14200 that carries a measured move to 16000 (a shorter pattern within was the cup with handle as I was unable to fit the entire triangle pattern here). Give the Nasdaq the benefit of the doubt until it does not deserve it. One thing that could tip it in the bears favor is the action in the SMH lower 8 of the last 9 sessions.

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