Essential (Unfinished) Business

Further crude oil weakness into the June contract seems at odds with the likes of XOM flashing green and the XOP ETF (which houses exploration firms) green once again and actually right near multi-week highs.

While oil is expectedly garnering plenty of headlines this morning and may be tempting on several levels, be it pressing the short side destruction and obvious dislocations with many trapped longs in the commodity itself or, instead, seeing value in beaten-down energy stocks which may have already priced in a fair amount of calamity (or a blend of both from a trading perspective), I am far more interested in the Nasdaq finally cracking for more than twenty minutes of trading. 

On the semiconductor ETF daily chart, updated below, for example, we have the chip knifing back below their 200-day moving average (yellow line) and potentially breaking down from the highlighted (light blue) massive bearish wedge. 

Granted, a slew of chips will be reporting earnings in the coming weeks alongside tech giant like NFLX tonight. But after a spirited rally which seemed unstoppable since late-March I suspect bears have some unfinished business lower. 

And the main way they follow-up on that unfinished business is by cracking tech stocks across the board, with the action today perhaps getting the ball rolling.