Tech Wakes Up:
The old saying goes “it’s not how you start, but how you finish”. That can apply very well to the stock market and boy did it do so Friday. The Nasdaq CLOSED nearly 500 handles off its lows and give the bulls credit in doing so to end the week as Mondays have been generally soft. And the benchmarks did something that classic bull markets do, open near the lows and CLOSE on the highs. Am I declaring this a bull market again? That is hard to say but one now has a very clear area to play against on the long side. At the intraday lows Friday the Nasdaq was 10% off its recent highs, jibberish for a correction, although it was violent and swift in nature. One day does not satisfy my concern but it is a good start and Monday will start the new month where inflows take place. The MONTHLY chart did record its third straight dubious candle and notice the bearish RSI divergence since the start of 2018. That was why PRICE action is omnipotent, as if someone was cautious over that they would have sat out a huge bull run. Pick your bias with the semis after a big NVDA report this week as the SOXX MONTHLY chart sports a bull flag. Bears will point to the doji candle last August, and the last 5 months all CLOSING well into the lower half of the range with long upper wicks. I am sure you have heard it ad nauseum this is a stock pickers market and not one to be a hero in. As Zanger has said there is 1 or 2 times a year where the market has a clear, powerful trend and you can really step on the accelerator. This is not one of them.