Looking Long Term:
- We took a peek at the MONTHLY chart of the Nasdaq in our WEEK AHEAD Note this weekend and of course, it will look similar to the MONTHLY chart below of the IGV. For those that think we have come too far, and who knows they may be right, we are almost back to PRICES seen a couple of years ago. For certain it will not go up in a straight line, and round number theory like I suggested with the top semi-play in NVDA at 600 may come into play with MSFT, the number two holding in the IGV at the 400 figure. Monday it recorded a hanging man candle there, and this possible pause would be good if the software sector can digest it healthily. Additionally, CRM, the top holding (recorded a bearish counterattack candle Monday), is feeling that pull on its MONTHLY chart to the very round 300 number. INTU is now pushing off the 600 number, which is something MSFT would like to do after hanging around potentially at 400 in the near term. ORCL too was recently comforted at par and has now broken above a bearish head and shoulders pattern, and its 200-day SMA. It may stall here at the upside gap fill from the 12/11 session, but I think one now gets the picture of a strong overall software space among the large caps.
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Originally Published January 22, 2024
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