Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Good News/Bad News For Semis

|Includes: Philadelphia Semiconductor Index (SOX), SOXL

The Good news for the Semiconductor stocks is that we’ve broken out of a range on the 60 minute chart that gives hope for the bulls that the rally in tech will continue. All rallies have to start somewhere and you’ll find clues in smaller time frames.

The bad news is the daily chart is at an area where most rallies are shot down in flames. The thing to watch here is the nature of the pull back (assuming there is one). If  it’s contained above the middle bollinger band on the daily and the RSI doesn’t go under 30 on the 60 minute chart then we may get another leg up. But if we sell off without any real support then this is likely going much lower.

Right now I give a slight edge to the bulls.