After getting to the middle of the range at 32.50 the Semiconductors staged a sharp rally that brought the SMH back over $35. The semiconductors haven't been leading the nasdaq's moves higher this year, but have been providing downward pressure. The fact that they had a sharp snap back rally, allowed the nasdaq to rally back toward it's highs.
Notice, the QQQQ (Nasdaq 100) has actually rallied to new highs for the year which means Large Cap Tech is leading the market. Another area of leadership has been the Dow Jones Transportation Index, which is surprising considering the high energy prices. If you are a believer in Dow Theory, a break out in the Dow Jones Industrials this fall would be very bullish!
The Dow Jones Utilities just completed the most incredible 3 year rally that looked more like a tech or biotech rally. But they have cooled off in recent weeks as the bond market moved lower.
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