TECHS LEAD STOCKS HIGHER -- NASDAQ 100 CLEARS BOTH MOVING AVERAGE LINES -- SEMICONDUCTORS ARE STRONGEST TECH GROUP -- TEXAS INSTRUMENTS ACHIEVES BULLISH BREAKOUT -- FOREIGN STOCK INDEX EXCEEDS SPRING HIGH
NASDAQ 100 CLEARS MOVING AVERAGE LINES... Stocks are having another strong day. Chart 1 and 2 show the Dow and S&P 500 SPDRs moving above their early November highs. Both indexes cleared their 50-day lines last Friday. Chart 3 shows the Power Shares QQQ Trust moving above its 50 and 200-day lines. After acting as a drag since October, the technology-dominated Nasdaq market is leading the market higher today. Technology is the day's strongest sector.
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Chart 1
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Chart 2
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Chart 3
SEMICONDUCTORS ARE TOP INDUSTRY GROUP... Within the technology sector, semiconductors are the day's top industry. Chart 4 shows Market Vector Semiconductors (SMH) surging above its 200-day line to a three-month high. Its relative strength ratio (below chart) has turned up as well. That good news for that group, the technology sector, and the rest of the market.
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Chart 4
TEXAS INSTRUMENTS BREAKS OUT... The day's most impressive chart pattern in the semiconductor group belongs to Texas Instruments (TXN). Chart 5 shows the stock surging more than 4% and breaking through its August in very decisive fashion. The fact that the bullish breakout is taking place on rising volume is another positive sign. Its relative strength line (below chart) isbreaking out as well. That's a bullish sign for the stock and the chip group.
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Chart 5
FOREIGN STOCKS CLEAR SPRING HIGH... Foreign stocks are achieving bullish breakouts and leading U.S. stocks higher. Chart 6 shows the Vanguard FTSE All-World ex-US (VEU) rising above its spring high. The VEU includes foreign developed and emerging markets. Bulllish breakouts in foreign stocks are a positive sign for U.S. shares.
