STRONGER TECH STOCKS BOOST NASDAQ -- SEMIS TURN UP

John Murphy
by John Murphy,
Pioneer Technical Analyst

TECHS ARE HAVING A STRONG DAY... Technology stocks are the day's strongest sector which is helping boost the Nasdaq market.  As a result, the Nasdaq is leading today's rally.    Chart 1 show the Invesco QQQ Trust trading 1.8% higher today and nearing a test of its 50-day moving average.  The QQQ may also be heading for a test of a small "neckline" drawn over its March highs.  A close above that resistance line could push prices closer to their February high.

Chart 2 shows the Technology SPDR (XLK) already trading above its 50-day line and heading toward a test of its March highs.   The XLK is the day's strongest sector.    Semiconductors are helping lead the XLK higher.    Chart 3 shows the VanEck Vectors Semiconductor ETF (SMH) trading at the highest level in a month.  My Friday message showed three chip leaders to be Applied Materials, Lam Research, and KLA Corp.   All three are having another strong day.

Chart 1
Chart 2
Chart 3

S&P HITS NEW RECORD... The S&P 500 is hitting a new high today with most sectors in the black.   The three strongest sectors are technology, consumer discretionary, and communication services.   Two of the day's laggards are energy and financials.   Treasury bond yields are flat which may be lending some support to the tech sector and the rest of the market.   Rising bond yields present one of the biggest threats to the market rally, and technology stocks in particular.

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John Murphy
About The Author:

A trailblazer in intermarket analysis, John authored key texts that shaped technical trading and helped generations of investors decode market trends using charts and correlations. Learn More 

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