Monitoring the Semis for Continued Upside

This rally started with the semiconductor sector leading the way. Yesterday the S&P 500 experienced a distribution day and the NASDAQ indicated it needs to pull back a bit before it can tackle overhead resistance. However the semiconductors, the lead dogs for this rally, are trading right at their breakout battle grounds. The SMH is right at its long term trend and price is testing breakout levels. If it can hold up through the week and close above $37.50 by Friday we should start to see some real breakthroughs in the tech sector.