More of the same

Posted by downtowntrader | 12/20/2006 08:32:00 PM | 0 comments »

I don't have much to add today so I will keep it short. While large caps are holding up quite well, the Nasdaq and Russell are struggling to regain their 20day sma's. What I found interesting today is how the $SOX held up while the rest of techs rolled over.

Here is a chart of the $SOX. It is still in decent shape holding over the 200sma.
The reason I pay attention to the $sox is because tech tends to lead the market both to the upside and downside. The semiconductors tend to lead the tech stocks for several reasons. Now, while the $sox held up in the green today, it too is struggling to hold it's 20sma. Whichever way the $sox breaks next will likely be the way the markets move.

Thats it for tonight.

Good Luck,

DT

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