Weekly Likely to be Slow in Front of Employment Report Friday

It is tough to keep a near term bullish outlook after today’s scans. The intermediate outlook still remains bullish, but for the rest of this week bulls have their work cut out for them. The QQQQ has immediate overhead resistance at $39 and support at $38. We will be surprised if it bumps over $39 in front of Friday’s employment report, more likely it will drift back toward $38 support. One of the reasons we believe this is a possibility is due to the once again weak semiconductor sector, which is again heavily testing its long term trend. The SMH must hold $33 or things could get ugly for a few weeks.