Another session that can’t seem to get out of the gate.  Although there have been several rally attempts, none are attracting fence-sitters. Yet, one sector continues to lure investors.   Technology continues to climb higher, and the good news is, buyers have found leadership outside of the momentum names that carried the sector and entire market for almost two years.

Semiconductor stocks were already gaining momentum with the SOX index crashing through the 200-day moving average a week ago.  Today’s lift is coming from the CEO of Microchip who suggested the company could be at a cyclical bottom.  He mentioned the outcome of trade talks but seems confident the industry is looking at a recovery, just not sure if it’s a V or U or L.

Semiconductors

Beyond the move in chips, the market may be spinning its wheels.  That’s the kind of consolidation that is supposed to nudge weaker hands to take profits, and very few are looking to lighten up at this point.