Noon Update - HGX & SOX

So far today, the broader market is flat. Stocks on the other hand, are not flat. The housing stocks, such as MTH and RYL are up well today. WLT, SNDK, GOOG, AAPL and other front runners will perform well in a flat market.

The Housing Index - Philadelphia (HGX) - Daily chart
One of the strongest sectors this week has been the housing index. Technicals look good. The daily chart of the HGX shows that it is in a neutral symmetrical triangle pattern. It has completed a wave (3) to (4 ) pullback and also completed an ABC. (Furthermore, the weekly HGX chart shows that it is in a failed topping pattern because it made an irregular flat. An irregular flat occurs when wave C at 248.43 is higher than wave A at 231.61.) Today, the HGX touched the down trend line, but it has to take out 275.00, which is a full blown breakout. Once again, all indicators and oscillators are bullish and showing positive divergence. The HGX is bullish on all time frames. MTH and RYL are the front runners in this index.

The Semiconductor Index (SOX)- Daily Chart
The daily chart of the SOX shows that it is currently in a wave 3 to 4 pull back. The moving averages are stalling and holding at the 489 level. Indicators and oscillators appear to be bottoming. It is still in a bearish trend on the daily, but the SOX is bullish on the monthly and weekly time frames.