NASDAQ LEADS MARKET HIGHER -- SPX MAY BE BREAKING OUT -- SEMIS LEAD TECH STOCKS HIGHER

NASDAQ CLEARS OCTOBER HIGH.. .After spending the week in a holding pattern, stocks are ending the week on a strong note and appear poised to continue their fourth quarter uptrend.   Chart 1 shows the S&P 500 testing its mid-October high and nearing an upside breakout.   Odds for an upside breakout are enhanced by relative strength in large tech stocks in the Nasdaq 100 which are once again pulling the rest of the market higher.  That can be seen in Chart 2 which shows the Invesco QQQ Trust trading at a tw0-month high and breaking though a falling trendline extending back to its July peak.   That greatly increases the odds that the SPX and the Dow will follow it higher.

SEMICONDUCTORS LEAD XLK HIGHER... Technology is Friday's strongest sector and semiconductors are leading the XLK higher.   Chart 3 shows the VanEck Semiconductor ETF (SMH) turning up in decisive fashion and appears headed toward its July high. Three of the day's top percentage chip leaders are shown below.   They include Taiwan Semiconductor (TSM), Advanced Micro Devices (AMD), and Lam Research (LCRX).