Semi Equipment Analysis Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Semi Equipment Analysis

SOXX 309.40

+1.0%

Dec 5 4:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Donald Wennerstrom who wrote (7848)	12/21/2002 4:11:06 PM
From: Return to Sender	Read Replies (1) of 95530

Weekend Market Analysis amateur-investors.com (12/21/02) The week ended on a positive note as both the Dow and S&P 500 found support at their 38.2% retracements from their October 10th lows to their December 2nd highs on Thursday (points A & B) and then rallied on Friday. If the Dow rallies next week look for resistance as it approaches the 8900 area which is its 200 Day Exponential Moving Average (EMA). Meanwhile if the Dow doesn't rally next week and fails to hold support at its 38.2% retracement near 8350 then the next level to watch would be at its 50% retracement near 8127 (point C). As far as the S&P 500 if it tries to rally next week look for initial resistance around 925 which acted as a previous resistance level in September and November. If the S&P 500 can rise above the 925 area there will be even stronger resistance around 955 which corresponds to the December 2nd intra day high (point D) and its 200 Day EMA (blue line). Meanwhile if the S&P 500 fails to mount a rally next week and breaks below its 38.2% retracement level near 880 then the next area to watch would be the 50% retracement level around 860 (point E). The Nasdaq broke below its 38.2% retracement level on Thursday (point F) and closed near it on Friday. If the Nasdaq tries to mount a rally next week look for initial resistance around the 1425 level which acted as a previous resistance area in August and November. Furthermore if the Nasdaq can break above the 1425 level it will encounter stronger resistance as it approaches its 200 Day EMA (blue line) near 1470. Meanwhile if the Nasdaq fails to rally next week and continues downward the next area to watch would be the 50% retracement level near 1315 (point G). One of the key Indexes to watch over the next few weeks is the Semiconductor Index (SOX) which failed to find support at its 38.2% retracement (point H) from the early October low to the December 2nd high and is currently near its 50% retracement level near 300 (point I). If the SOX fails to hold support near its 50% retracement area and drops below its 61.8% retracement area near 280 (point J) then a retest of the early October low near 210 (point K) is very likely. Thus watch the SOX closely over the next few weeks because if it fails to hold support in the 280-300 range and breaks below 280 then the rest of the market will probably follow its lead. Meanwhile it's very likely that the US will go to war with Iraq sooner than later whether right or wrong. Unfortunately the uncertainty leading up to the attack is probably going to hold the market hostage and not allow for a sustainable multi-week rally until the war is over with and the end result is viewed as a success for the US.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next