Weekend update- SOX, SMH, MRVL
The Semiconductor Index (SOX)
The weekly chart of the SOX shows that it is currently in a wave 3 to 4 pull back within a larger ascending triangle pattern. The moving averages are holding up nicely in a bullish fan. I am just waiting on a reversal to the upside. It seems highly unlikely that the SOX will cross below the 200 week moving average. We may be getting close to a tradable bounce.
The monthly chart show that the SOX has not crossed the down trendline going all the way back to early 2000 bubble area. I do believe that the SOX is getting stronger and it is getting sandwiched in this wedge and testing the uptrend line. With the market looking strong the SOX may follow suit or it may breakdown and lead the market lower. We will just have to wait and see what happens with the SOX.
Marvell Technology Group Ltd. (MRVL)
On the weekly chart you can see that MRVL is in a wave 3 to 4 correction. There is a gap between $50.49 to $53.59. The uptrend line is at $48.00. How far it will correct I don't know. However, the MACD is making higher highs along with price. I am watching MRVL because it could reverse on a dime. It is great front runner. No position yet.
The Nasdaq 100 Bullish Percent Index (BPNDX)
This is for the NASDAQ 100 which is a laggard. The Bullish percent indexes show what is getting buy signals versus what is not. When it has bullish divergence you can look for a reversal to the upside and vice versa. The chips cannot keep falling whilst the Nasdaq goes up. The BPNDX show that it is correcting within a falling wedge. The PPO is showing a bullish divergence and stochastics and RSI are pointing up. I will keep an eye on this sector
