Here is some TA on intraday QQQ and SOX -->
1:30 PM EST - Intraday Market Update -
Semiconductors holding up
The Nasdaq-100 (QQQ) continues to hug the 50-pma on the 60-minute
chart. After Prudential upgraded The Semiconductor Index
(SOX.X), they became the stocks responsible for preventing a
further decline in the Nasdaq, currently up 0.42%.
Starting with the daily chart, we can see that the Semiconductor
Index (SOX.X) failed at the 200-dma before pulling back. A
bullish hammer that formed yesterday may have marked the end of
the two-day decline. A "hammer" is a one-day candlestick pattern
with a long lower shadow (at least twice as long as the body), a
very small upper shadow, and a small real body. The
interpretation is that strong selling created the long lower
shadow, but buyers were able fight back and end the day as a
draw. While candlesticks can signal possible reversals, no
pattern is an island. When a candle forms on a daily chart, I
like to drop down to the 60-minute chart to see what happened.
On the 60-Minute chart we can see the decline in the SOX cut
through the 50% level like a hot knife thorough butter, and
finally stopped at the 61.8% retracement level and 200-pma. This
formed the long lower shadow, and the subsequent bounce back to
the 50-pma caused the small real body of the candle yesterday.
The hammer's inability to spark a sharp reversal today is due to
the overhead resistance at 666 (38.2%) and the overall bearish
sentiment, but we can now see how a combination of the technicals
and fundamentals is helping the SOX to hold up better than the
rest of the market today. |
