Pre- Market Update- NQ, SOX, SMH, & INTC

NASDAQ 100 Futures update (NQ) - Daily Chart
NQ futures are forming a cup and handle. Resistance is at 1774 for short term traders. NQ futures are at 1774, that is 27 points away, NQ is currently at 1747, that is a one day rally. Next week NQ could pull back to form the handle. Then break out would most like occur the week after the pull back. I recommend that new subscribers wait for new set ups. Current subscribers ought to wait for the handle to buy.

The Semiconductor Index (SOX) - Weekly Chart
The weekly chart of the SOX shows that it is currently forming a large ascending triangle. However, it is in a wave iii to iv pull back. The moving averages are holding up nicely and we are just waiting on a reversal to the upside. It is highly unlikely that the SOX will cross below the 200 week moving average. The wave structure is bullish and so is the trend. Indicators and oscillators are bullish, and are showing positive divergence.

Semiconductor Holders ETF (SMH) - Daily chart
The SMH daily chart illustrates that it is in a megaphone topping pattern. If this turns out to be a continuation RST I will freak out! In any case, resistance remains at $37.80 -$37.90, support is at $36.70. I believe the SMH will run up to resistance and then pull back to support. Then, after that low is put in, the SMH may break out on the next try at $37.80. For now we will just have to wait and see. The Aroon just had a bullish cross and the indicators and oscillators are turning bullish.

Intel Corp. (INTC)- Daily Chart
The daily chart of INTC illustrates that it is in a falling wedge reversal pattern. I believe that a catalyst will come out and cause INTC to rally at some point. I believe that this is due to the bullish divergence that is appearing in the indicators and oscillators. However, INTC could still go to the bottom of the wedge before a breakout occurs above the wedge.