Market averages and a few SOX stocks.
The DJIA, SPX, OEX, Nasdaq Composite, and SOX, are all trading above their middle daily bollinger bands (20 day MA). This is positive. These indexes might meet resistance at their upper daily bollinger bands: 8225 (DJIA), 1070 (SPX), 518 (OEX), and 1775 (Nasdaq). I think it is prudent to watch these levels carefully if they are attained and take profits if the averages pull back from them.
The SOX is on the verge of a breakout on the daily chart and is the strongest of the indexes mentioned here. If the SOX closes above 228, it would have a new target of 245 which is the bottom of where it found support before breaking down on the weekly chart the week of August 28. The middle weekly bollinger band is also at about 245. Since making a low at 190.04 four weeks ago, the SOX weekly chart has a pattern of higher highs and higher lows. This is also bullish. My favorite SOX stocks at the moment are ADI, LSI, MU, and VLSI.
ADI is coming off a good base and doesn't have a lot of resistance until 20 1/2 to 21.
LSI has support at 12 1/2 and resistance at 14. If the SOX breaks out, then LSI will more than likely move above resistance at 14 and begin to fill it's gap between 16 3/4 and 18 1/4.
MU looks particularly strong with a target of 36 1/2 to 37.
VLSI has support at 8 (middle daily bollinger band) and resistance at 8 3/4. Once through 8 3/4, the next resistance area is between 10 1/4 and 10 1/2.
Best of luck to everybody tomorrow.
Dan |
