Your mother would be appalled. Keeping Diamonds and Flags in your socks drawer. What about the neat and orderly universe she tried to create for you. All those habits of cleaning up and being tidy. You were never supposed to stuff junk in with you clothes.
Ok, a little Friday pun. But the Philadelphia Semiconductor Index, also known as the SOX, has been moving higher the last 6 weeks and the technicals suggest another move about to begin. The Diamond consolidation that it went through from March until June extended to a near perfect target at 630 after breaking to the upside. 50 points into the Diamond and 50 points out. From there the consolidation in a bull flag pulled back to the 20-day SMA before moving higher again. And now a second bull flag touched the 20-day SMA Thursday.
The Hollow Red candle shows the strong intraday price action Thursday, touching that moving average and then moving higher all day. If it continues today the bull flag would break to the upside again and the target on a Measured Move like the last one would take it to 665. That is good news for the technology space and market in general. Keep an eye here Friday.
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