Appreciate the Symmetry

Alongside small caps in the IWM, the semiconductors were an integral part of both the May selloff and June snapback rally. 

Currently, the semis are trying to reemerge from a controlled, multi-day bull flag on the SMH, sector ETF pictured on the daily chart, below. Note the last several sessions featuring low sell volume as price drifted lower in a fairly orderly manner after an attractive breakout from the symmetrical looking pattern I have highlighted in light blue for you. 

Should the semis follow-through higher this week, it is hard not to look at a name like AMD, one of the standouts in the sector for several months now. In addition, we are eyeing other intriguing names with Members. 

The bottom line is that chips are still a key part of the market for bulls to improve on, as the bearish action in May and bullish action in June confirmed that relationship. 

Elsewhere, the CSCO for ACIA deal is a promising post-July 4th sign for M&A this summer. And SQ is breaking out into multi-month highs after grinding along for a good while.