Glass Half Full:

The semiconductors have been somewhat of a sore spot inside technology (notice the weakness still on the ratio chart against software). Its general, Nvidia, was wounded on the battlefield and the group has suffered. Is that weakness subsiding? A lot will have to do with the PRICE action of the daily chart below of NVDA. Tuesday took a step forward breaking above a bull flag formation that commenced at the very round par number. Bears will state it is still in the process of making lower highs the last 3 months. Give it credit for not buckling quickly beneath the 50-day SMA which it did in late July and August. The WEEKLY chart does show its second doji candle last week along with the one recorded the week ending 6/28. Its MONTHLY chart does show 3 straight spinning top candles, but as long as this remains above 115, I think one can be constructive. We will get a sneak peek at how things may shake out in the semis with the MU report Wednesday after the CLOSE. This is the updated chart of the name and how we looked at it in our 9/18 Technology Note.

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