Is Sister Semiconductors a Half Fish Out of Water?

March 8, 2018

Mish's Daily

By Mish Schneider

blankThis is a man’s world. But it wouldn’t be nothing, nothing without a woman or a girl.” James Brown.

Sort of appropriate on International Woman’s Day, named such on March 8, 1917 when women in Russia were granted the right to vote.

Today, our woman celeb is the Modern Family’s very own Sister Semiconductors.

We could in fact, replace James Brown’s lyrics with “This market would be nothing without our wonder woman.”

Semiconductors (SMH) made a new all-time high this week. And that is with the news of Cohn’s resignation, Trumps’ tariff deal and Stormy Daniel’s lawsuit.

She flies and swims.

Our Wonder Woman mermaid, however, may only be able to stay out of the water for so long.

On the daily chart, SMH ran right to the top of a channel.

110.50-111.00 area is the new resistance area. Furthermore, SMH could not close above Wednesday’s high at 109.93.

SMH also closed in the red. Not by much, but every detail could be noteworthy.

Now, I’m not trying a make a bearish case. At least, not today.

However, should Friday’s price close under today’s low at 109.18, the possibility that SMH dives back into the water, until the next support area at 107.50, it could impact the rest of the market.

On the flip side, a strong day in SMH, say a move over 110.50, will pierce the top of the channel in not only the leading sector, but also in one that is nowhere near overbought.

Meanwhile, the S&P 500 went into an unconfirmed bullish phase. SPY needs a second day to confirm and convincingly clear the 275 level.

The Russell 2000 (IWM), closed red, but over the pivotal 156 level.

Big Brother Biotechnology (IBB), held 111.50 and closed green.

All good news for the Modern Family, in spite of Granny Retail’s (XRT) weakness.

And, do not forget about Transportation (IYT), still in a warning phase.

Wonder Woman might have the power to transform into an amphibian and navigate the deep ocean, but what happens if she runs into Moby Dick?

S&P 500 (SPY)Unconfirmed Bullish Phase. 272 pivotal and 275 significant resistance. Bottom line, unless this clears 275, the highs are getting lower.

Russell 2000 (IWM) 156 pivotal support. 154.11 the 50 DMA.

Dow (DIA) Big Blue weak link-still in warning phase unless we get two closes over 252.75.

Nasdaq (QQQ) 168 pivotal. And must clear back over 170 if good

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