Was The REPORT Good Enough Tonight?
For all the talk of defensive groups leading the way in 2024, technology as of late does not want to hear about it. Over the last one month period the space is the best performing major S&P sector out of 11. Renewable energy equipment is playing a big factor, and TAN may be “heating up”, pun intended, as it breaks ABOVE a WEEKLY bear flag pivot at the round 40 number. But semiconductors have been a huge contributor to the outperformance and the SMH chart shows a very nice run since a bullish harami candle was recorded off the very round 200 number on 4/22. Some would call Wednesday’s session somewhat soft as a bearish hanging man candle, which also traded into the big bearish engulfing candle from 3/8. It is now well above the double- bottom breakout trigger of 227.67 taken out on 5/15 and it would not be surprising at all to see another push toward the above overbought 75-80 RSI level which was normal between last December and March. From a seasonality perspective, the SMH in May is living up to its strong billing up 9% this month so far. The elephant in the room is the WEEKLY chart below of NVDA. A CLOSE Friday above 1000 would go a long way in keeping this market rally going into the second half of 2024.