OT: A break below 309 on the SOX will accelerate any potential selling but we could hit the 50 day SMA or even higher levels of resistance first however unlikely that might seem.
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It can be argued that yesterday's strong manufacturing numbers could be supportive enough that the basing pattern we have seen today in the SOX will lead to even higher highs in the near future.
I don't think that will happen but I am always the first to point out my own failings as a predictor of the future. Still charts don't lie. Neither do market timing indicators and they are neutral to negative at best.
Despite the fact that we have built on the SOX rally today so far the overall market is dragging. Any weakness in the SOX will drag it down an awful lot further if or when that happens.
Right now the SOX is still in position to rally up to its 50 day simple moving average of 317.42 and perhaps as high as 325 to 330 next week where unless we get lots more good news I predict this rally will fail
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The sentiment is too bullish. The market timing indicators are still heading south. The market is closer to a top than a bottom. Gold is still rallying. Oil prices are too high. Geopolitical concerns and the war on terrorism continue to dog the market.
No serious rally can take place her without a huge influx of volume to take out serious resistance levels which ain't gonna happen with so many technical and fundamental hurdles to clear.
All the above are simply my opinions
RtS |
