The Road To 16000:

A couple of months ago I put a 16000 target on the Nasdaq as a measured move after a break above a bullish ascending triangle pivot of 14200. It did so the week ending 6/25 that rose 2.3% in the second-largest WEEKLY volume in the last 5 months. The tech-heavy benchmark is now higher by almost 1000 handles since then, and it is currently almost 6% from 16000. Helping it navigate toward that goal are both the semiconductors and software. It has seemed over the last couple of months either one or the other group was doing the heavy lifting, but now they seem to be in sync from a strength perspective. Software has been garnering much of the attention in recent months, but semiconductors now seem eager to gain the spotlight. The SMH rose more than 6% this week, its best WEEKLY gain since the week ending 2/12. I counted 29 semis that rose by more than 10% this week, and is that frothy or FOMO? Thirteen of the 29 names that did so were below $10, but looking under the hood the entire semi-space looks robust. And keep in mind it is demonstrating power in the wake of just tragic, horrific overseas news, and we are coming into a week that will lead into a holiday that traditionally tends to act bullish.

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