The S&P and quite a few stocks are pausing basically sideways since an opening gap higher. Brocade is a stock I mentioned over the weekend as perhaps finally breaking out after years of being a dead money perennial takeover candidate. On the updated weekly chart, first below, you can see that breakout at least has a chance of being set in motion.
However, the action in the semiconductors is concerning. I still think the market needs the semis to participate if not be one of the leaders in order for us to see another sustained leg higher this summer or fall. On the second chart, note Intel breaking below some support. We need to see how it closes today. But so far, not so good.
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