MARKET STARTING WEEK ON STRONG NOTE -- SOX PULLING TECHS HIGHER

SOX TESTING 200-DAY LINE... The Semiconductor (SOX) Index is gaining 6% today and is leading the technology sector higher. The techs, in turn, are leading the rest of the market. Last week we showed the SOX exceeding its 50-day average and breaking its three-month down trendline. This morning, it's challenging its 200-day moving average. A close above that long-term resistnce barrier would be a very positive sign. Several SOX stocks have already accomplished that task.

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SOX LEADERS... Here are three of today's SOX leaders. All three are trading over their 200-day line. Intel is rising above that line today and is trying to break through initial resistance near 18. Altera is moving up to challenge the highs of the past three months. Xilinx is the strongest of the three -- having already broken out to the highest level in eight months.

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NASDAQ EXCEEDS 200 - DAY AVERAGE... With a lot of help from the stocks shown above, the Nasdaq Composite is up 42 points today and is the strongest of the major stock indexes. We've said many times that Nasdaq leadership is good for the market. In morning trading, the Nasdaq is trading above its 200-day moving average. More importantly, it's now testing the down trendline drawn along the December/January highs. That's a very important test for the Nasdaq -- and the rest of the market. MORE LATER.

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