Strength In Semiconductors Is The Key To Setting New Highs In The Stock Market
- Date: 16-Oct-2021
- Source: Forbes
- Sector:Financial Markets
- Country:Middle East
Strength In Semiconductors Is The Key To Setting New Highs In The Stock Market
(Photo by Justin Sullivan) The Dow Jones Industrial Average (DJI) gapped above its 50-day simple moving averages and has a neutral weekly chart. The S&P 500 Index (SPX) also gapped above its 50-day SMA and has a neutral weekly chart. The Nasdaq Composite (IXIC) is on the cusp of its 50-day SMA and has a neutral weekly chart. The Dow Jones Transport Average (DJT) is well above its 50-day SMA and has a positive weekly chart. The Russell 2000 Index (RUT) is above its 50-day and 200-day SMAs, which are converged at 2, 234, 17 and 2, 230. 64, respectively. This week's strength is preventing the formation of a death cross. The Philadelphia Semiconductor Index (SOX) held its 200-day SMA at 3, 171. 51 on October 12. It's still below its 50-day SMA at 3, 343. 89. Its weekly chart remains negative. The SOX is a major warning for the stock market. If the SOX turns positive the upside is to new highs. The monthly risky levels are 37, 751 on the Dow 30; 4, 730. 17 on the S&P 500; 15, 259 Nasdaq; 17, 038 on Dow Transports; 2, 409 on the Russell 2000; and 3, 584 on the