🎈 Up Big Today: Find today's biggest gainers with our free screenerTry Stock Screener

Nasdaq: Weakness in Semis Continues to Cast Shadow on Bullish Momentum

Published 09/12/2024, 03:51 pm
NDX
-
US500
-
US2000
-
IWM
-
IXIC
-
SOX
-

This could be viewed as the glass half full after the Nasdaq gained over 3% on Friday, but the Semiconductor Index is doing its best not to participate in the festive goodwill.

Technicals edge on the bearish side with momentum (Stochastics 39,1) struggling to make it over the mid-line. Converged moving averages, along with wedge resistance, remain in play as upside blockers.SOX-Daily Chart

The Nasdaq had one of its best days in a long time, gaining 3.3% on higher volume accumulation. Technicals are positive, and while the Semiconductor Index underperforms, the Nasdaq surges.Nasdaq Composite-Weekly Chart

The Russell 2000 has been drifting lower without any concerted selling to get it there. There is a 'sell' signal in the MACD, but other technicals are net bullish. The 20-day MA might offer a catalyst for a bounce but an undercut looks more likely.

IWM-Daily Chart

The S&P 500 has been moving steadily higher without any fuss. The best aspect has been the accelerated gain in On-Balance-Volume since the October swing low that coincided with the successful breakout support test.

Any change above 1% is going to look more dramatic than it actually is given the tight action in November.

SPX-Daily Chart

For the coming week, bears will be watching the Semiconductor Index. Bulls can look to the Russell 2000 (IWM). However, the Santa Rally is still a couple of weeks away, so it's hard to see sellers having much influence until the New Year.

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.