Cycle Trading

Semiconductor stocks have been leading the market higher this year.

The above chart measures the performance of the Semiconductor Index to the S&P 500. The Semi’s ran into resistance back in early March. After a correction it broke through resistance in June, but could not hold above the resistance. It now appears that a “kiss good-bye” is in-progress.

On Saturday we discussed Friday’s bearish reversal. Things are starting to add up. In the Weekend Report I look at Friday’s bearish reversal in respect to the weekly and yearly cycles and how Friday’s bearish reversal could be the first domino of a larger move.