Another key area to keep an eye on is the semiconductor group. A chart of SMH shows the importance of the 34.30 area. Support is 33.60. Needless to say, bulls need to get above 34.30 quickly and stay there. If they do that, next level of resistance will be 34.90, June high. The semis will tell you early on if this summer rally is about to come to an end. The last two days of trading last week saw some diverging weakness there, bulls do not want to see that continue. Watch the relative performance of SMH once we get past the usual buying of uneventful post-labor days.
This entry was posted
on Monday, September 04, 2006 at 8:04 AM.
