Better Late Than Never:

With the recent overall market run, many are running out of superlatives. I keep things in perspective and try to stay grounded and just listen to what the tape is trying to convey. Looking at the WEEKLY software chart below it is clearly positive. It crawled above a bull flag pivot and is now 1% off most recent 52-week highs and the CLOSE Friday was its best WEEKLY finish in almost 2 years. Most impressive to me was it finally cleared a 3-week tight pattern, a strategy conceived by William O’Neill, with the 3 weeks ending between 7/14-28 all CLOSING within just .77 of each other (the week ending 7/28 recorded a doji candle as well which are adept at signaling potential changes in the prevailing direction). The IGV feels to me like it has a magnetic pull into the very round 400 number into year-end. Top holding MSFT broke above a 366.88 cup base pivot and that will have a big say in the near-term direction of the ETF. We know the best breakouts tend to work right away so next week, a holiday-shortened one which tends to be bullish, will be crucial.

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