The Dow being down 0.02% says it all — another stalemate today. The NASDAQ was up 6 points yesterday, and down 6 points today. So I’m sticking with my earlier call of the market going nowhere until earnings reports start rolling in next week. I did spot some hidden weakness today though. The semiconductor index (SOX) was down 3.75%. I think this was due to some earnings warnings this morning by MCHP, RFMD, and possibly QCOM’s warning. There was a note out yesterday morning from an analyst warning of SARS having a negative impact on the industry. His warning was largely ignored yesterday, but today MCHP mentioned SARS as the reason for issuing their second warning in 3 weeks. Whatever the reason, the SOX looks like it’s ready to break. It closed at 303 today, just below it’s 200 DMA. If it breaks it’s 50 DMA, which sits at 293, things could get ugly. The SOX usually leads the NASDAQ, so it’s worth keeping an eye on.
