NFTRH+; US Stock Market (daily TA)

US markets are testing the short-term support zones as illustrated in NFTRH 625.

SPX is settling into the first projected support zone at the EMA 20 and just above the rising SMA 50. It’s almost as if the market looked for and found an excuse (du jour in the media) to drop to and test this level yesterday.

spx

NDX dumped to its EMA 20 as well.

ndx

DJIA banged the EMA 20.

dow

SOX is still above its first minor support zone.

sox

US markets have done nothing abnormal but aside from the SOX, the headliners have not taken out the previous highs and until they do there is risk that the next significant move could be down, not up. The first thing they’d need to do to avoid that risk is to hold roughly at these initial support areas.

Meanwhile, here is the inter-market view showing SOX/NDX gaining strength, NDX/SPX still suspect and the Semi play still getting the momentum overall (vs. SPX). Is that a bubble or a cyclical leader pointing the way forward in 2021? As yet to be determined, but given its expanding use in the world’s most advanced technologies (IoT, Ai, communications, automation, gaming, etc.) I don’t see Semi as a bubble, at least not in relation to big Tech in general. SOX/SPX is overbought, however.