I want to keep a tight focus now on our obscure * leading economic and market indicators, the Semi Equipment stocks vs. both the Semi sector and Tech in general.
AMAT & LRCX are banging support vs. SMH this morning. There is no breakdown yet but nor is there any further room to the downside before a breakdown will be logged.
AMAT & LRCX vs. QQQ is very similar.
Again, I’d say that if these worked as leading indicators to the happy stuff in 2013, why won’t they work as leading indicators to sad stuff in 2018 (if they break down)?
* So obscure in fact that we are the only ones using them that I know of.