Monday, June 13, 2005
After the lack of follow through from Thursday’s strong showing we are now in market neutral territory. We find few advantages on either side here. The SMH (semiconductors) closed with a doji just above weekly support for the second week in a row, essentially keeping its cards to itself. If it continues to base at the current level it increases the chance that it will make a break higher but its position is precarious at the moment. Other major indices could really go any way at this point as well. The longer term bias is still bullish, but short term anything could happen here. With triple witching options day fast approaching we expect a tight trading range where prices run in place most of the week.