Watching the Semiconductors

Technology may be gearing up to lead another leg higher after the Fed hinted it was done raising rates. The QQQQ is well over extended, but the S&P has plenty of new support after reestablishing its uptrend. The most interesting development is the semiconductors, which have been market leaders over the past month. The SMH (semiconductor holders ETF) is back at $35, where it has been rejected twice since last year. This time however, it is attempting to break $35 with the wind at its back now that the 2-year downtrend is behind it. Money flow on the weekly chart has already broken out so we will soon find out if this is a precursor to a price breakout. Since we see very little evidence of distribution at current levels, we are optimistic.