Software Carrying the Load:

Perhaps that is about to change as the semiconductors sprang to life somewhat Thursday. Of course, one day does not make a trend but it is something to keep an eye on heading into Q4. This week with one session left the SMH is flexing its muscles higher by almost 2% as the IGV is down fractionally. Notice the SMH recorded a doji candle Wednesday after a 21-handle drop during the last couple of months (following the 7/31 peak with a doji candle too). Perhaps the semis will give the IGV some breathing room, as we have always said competition is a good thing. Give credit to the IGV for not undercutting the August lows, something the SMH did already,  so maybe the IGV needs to do that to wash out some impatient shareholders. A break below a bear flag in the top 5 holding INTU below the very round 500 number may expedite that process (ADBE is cliff-hanging at the same 500 area). CRM looks shaky at the very round 200 figure, but ORCL did record a bullish engulfing candle after its recent earnings flap. PCE Friday morning should get these names moving fast. Buckle the seat belts.

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