We had a lot of breakouts today, and the market looks ready for another leg higher. Of the major index charts, QQQQ stands out as perhaps the most bullish:
Of course, that point could be argued, since a wide range of sectors show clearly bullish patterns. Given that many charts are extended, I went looking for the best potential sectors for tomorrow. The semiconductors look quite good. Here is the chart for SMH, showing a high volume breakout.
XLI was up over 4% on high volume, and closed above the 200 day moving average. I will be watching for a breakout tomorrow.
The financials may be the fly in the ointment, as they clearly underperformed today. Maybe they'll pick up the pace tomorrow. At any rate, XLF is worth watching, since a strong financial sector would be another strong bullish catalyst, whereas weakness could provide a major drag. As I posted yesterday, the recent jump in mortgage rates is an ill omen for financial stocks.
Moving on to individual stocks, several from
yesterday's post still look good. Here are a few more from the semiconductors:
- KLAC
- NETL
- NVLS
- ASX
- RFMD
- PSEM
- EFII: Provides products for printing.
In communications:
- COMS broke out with volume.
- FNSR is looking very interesting here.
- HSTX is seeing plenty of volume.
Just one short pick for today, TSYS:
