Another Case of Piling On

Just as with our analysis regarding Microsoft and its earnings surge yesterday, Qualcomm is also acting like an elder statesman for a hot sector after its own earnings explosion today. 

MSFT is the veteran for the software group, while QCOM is it for the suddenly red hot communications equipment plays. 

Interestingly, on the quarterly chart, below, note how QCOM bounces precisely off a long-term support trendline (lower light blue) which actually harkens back to the end of last century. As disappointing as QCOM has been at times over the last decade or so, not unlike MSFT, a resurgence here as their respective industries lead the tape would more than compensate for that previous underperformance. 

Elsewhere, small caps and biotech are attempting to sustain rotations as the broad market appears a bit sluggish this morning.