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S&P 500, Nasdaq Breakouts at Risk While Semiconductors Lead the Charge

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Indices are still holding to their (pending) breakout, although the is playing the primary lead as it keeps its head above water on net bullish technicals.SOX-Daily Chart

The had registered a breakout, but Thursday’s losses (on light volume) took it back to breakout support.

The breakout hasn’t been violated – yet – but another day’s loss will kill it and leave a ’bull trap’. Unlike the , technicals are not yet net positive.Nasdaq Composite-Daily Chart

The () continues to trade below breakout levels, but is knocking on the door of higher prices.

It registered a higher volume accumulation day, but it hasn’t yet fulfilled a new ’buy’ trigger in the MACD, but is close to outperforming the .

IWM-Daily Chart

The S&P 500 started the day above its breakout level, but ended the day below it. Watch for a test of the 20-day MA where buyers can be expected to step in. It, too, is waiting for a new ’buy’ trigger in the MACD.SPX-Daily Chart

So, heading into today’s session, we remain in much the same predicament we have seen the past few days; waiting for a substantial breakout to clear the consolidation.





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