U.S. stocks are on the cusp of a very impressive breakout to all-time highs, but are still missing one key ingredient. They need help in the form of a semiconductors ($DJUSSC) breakout of its own. When the DJUSSC reached its all-time high on June 20, 2024, one year ago, a nasty bearish engulfing candle printed on extremely heavy volume, I wrote an article, “The Semiconductors Have Topped; Look Elsewhere for Opportunities”. Simply put, it was buyers’ exhaustion”. I looked for a 20% drop in the index, providing this chart at the time: There’s now been a lengthy period of sideways consolidation on the semiconductors as you can see from this updated chart as that 20% drop immediately occurred: Semiconductor leadership has been held firmly in check by the overhead price resistance just below 22000. Until that resistance is cleared, the QQQ has a lid on it. Let’s keep in mind…
