Very important note on the semiconductors, a group I have always put a lot of importance on as they have been a harbinger for the overall market for a very long time.
Again, the SOX held the 350 area on “supposed” bad news out of Intel. Yesterday, Intel lowered numbers going forward…supposedly a bearish occurrence. But we have seen this story before, where the semis are in a bear phase and only come out of it on the worst of news. The SOX held the 350 area in November and December of last year as well as early June this year. As of this writing, the SOX has a monstrous bid today…up almost 4%, holding that 350 area once again. If the SOX keeps going, expect the market to keep going.
I also want to point out that other weak areas have come off their lows, namely the energy and commodity complex. Again, when the worst areas come off the floor, it usually means the market has put in a floor. Now we get to see if there will be some real “oomph” behind this as the major indices head into massive resistance. Keep in mind, thousands more companies report in the weeks ahead…where a lot of jello will be moving on the plate.