Software No Longer “Soft”:
The semiconductors have been the sheriff in tech town for quite some time, but software is looking like it is going to give it a run for its money. On any metric, whether PRICE from their 52-week highs, 1 or 3-month look back periods the SMH is still firmly in control, and one can see that clearly with the ratio chart at the bottom of the chart below of the IGV. But the spinning top candle in the SMH Tuesday after being above a cup base pivot of 255.74 intraday, may give software an opportunity to play catch up. The big boys strength in the IGV in MSFT we have spoken about recently, but others like ADBE, the number 2 holding is on a 6-session winning streak and may try and make a run towards the very round 400 number which witnessed a reversal there on 2/2. NOW is back above the 430 ascending triangle pivot, PANW is breaking above a bull flag, and fellow peer CDNS may be one that is tiring after back-to-back doji candles from last Friday and Monday. The best scenario would be for both of these very important subsectors with tech to be performing well. The bulls may just be getting what they are asking for. Competition is a healthy thing.