Leaders On The Battlefield:
In last weekend’s WEEK AHEAD Note I discussed the lack of healthy breakouts occurring in this market. That is a concern, and more importantly very few acting well POST breakout, as we know the best breakouts tend to work right away, especially in a vibrant bull. Another aspect to think of when pondering the genuine well-being of the market is how are leaders acting. If they are behaving sluggishly or soft that should make investors uneasy. Below is a name in the semiconductor group that was a stalwart in ON that now is at an inflection point. It is now in “bear market mode” off 20% from the annual highs it made in early February and has fallen 7 of the last 10 weeks, with all 7 CLOSING at lows for the WEEKLY range. The stock broke BELOW a bullish 4-week tight pattern with the weeks ending 3/3-24 all finishing within just 1.13 of each other. We also highlighted the weakness in ALGM in the WEEK AHEAD Note too and it is off to a dubious start down 7% heading into Wednesday.