Thar She Blows!

The major averages continue to operate in a grinding range, in a bit of a holding pattern today in front of what is likely to be the busiest macro and earnings week of the spring, staying with Google/Alphabet tonight, not to mention with rates moving higher yet again. 

Select equities are acting well, but I am reticent to press longs until I see some of my holdings like TRIP follow-through on today's strength, mostly due to the broad market indecision. 

In the meantime, let us return to a chart we looked at a while back, the multi-decade look of the semiconductors. 

Using the SOX, or Philadelphia Semiconductor Index (the ETF is SMH), we can see that the chips are pausing at the dot-com bubble highs after briefly overshooting them. 

This is entirely normal and expected price action, despite the long-term overhead supply (supply meaning resistance or interested sellers form a prior significant major top) naysayers who argue that it is irrelevant. But it is that type of doubt which often makes overhead supply even more relevant, ironically. 

As far as calling a major top this time around, however, there is insufficient evidence to do so just yet. I will flesh out that point for Members in my usual Midday Video now.