SMH:HHH and SMH:QQQ

I think Qs blew off on Friday, I cannot call that a legitimate break out due to semis and Nasdaq's breadth. I wonder SPX is next to blow off or this market will pull a long suspected October 2007?!? RUT:SPX ratio also peaked last week, although as it just peaked, it is hard to be just bearish on SPX yet, it usually makes another late new high. I think Qs can continue to participate or lead in this case, well they did in October 2007. All in all, I think it is likely we will see one more high attempt, I was thinking generally higher for July to top in early August, but perhaps we see the highs with the "debt ceiling deal" working out this week... I am generally backing off from a phenomenal rally idea, but instead going back to a small blow off and top, probably new highs are achievable though on SPX, we just need to get through the next 24 hours first though as it is likely to remain very volatile due to the debt issues... Best of luck.

It will be interesting to see if this "buy" signal on a Jack Chan chart has the same result as the ones in March and June.
http://stockcharts.c...94476&r=473.png

The break out attempt did not take the gap out, so it should be treated as a bounce for now, but I see the positive divergence in MACD...

http://etfinvestment...vance_decline_d

There is positive divergence in its internals as well.

We never know what will happen when they magically make a deal or NOT???

Edited by arbman, 24 July 2011 - 05:46 PM.

I'm old-fashioned - I think they are going to make a deal - they will use the opportunity to make it one that no-one likes and both sides will say it is the fault of the other side, because of the "emergency." thinking about that this AM, with the futures down, I wondered, OK c. 20 points down on "no deal" probably means something like 50 points up once "deal done," IMP (in my prognostications).