Tech signaling new wave of Evolution may be about to burst.
Multi-Year Base Breakout’s in $INTC Intel and $YHOO Yahoo, along with $MSFT Microsoft’s Rounding Bottom reveal breaking of massive bases occurring in all sorts of places.
Microsoft’s Multi-Year Rounding Bottom is a prime example. Back in June, we had our eyes on the Intel monthly chart below, waiting for a close by month end to complete the massive head & shoulder bottom.
Breakout of Intel’s 12 year base has successfully tested.
“The Bigger the Base, the Higher in Space.” ~Louise Yamada~
After 9 years building a base Yahoo has broken free. Yahoo’s recent $640 million dollar purchase of the largest Independent software building company, BrightRoll, automates video advertising globally to extend and standardize; making “cross-device buying simple and measurable, and complement and integrate with TV,” said Tod Sacerdoti, BrightRoll CEO and Founder. “
Digital advertising swell meet the dynamic video streaming market wave slamming into the mobile, social media surge.
Some of the new-new Tech may be in your home, the Internet of Things, wearable or even on your skin! The Cicret braclet still in prototype projects email, video and games onto SKIN!
This is the $IAI iShares U.S. Broker-Dealers ETF Relative to the S&P 500.
When you have Relative Strength, it’s good to be invested in things outperforming the S&P500.
Below are some overweight stocks of the Broker-Dealers that are outperforming the S&P 500.
TD Ameritrade $AMTD is showing upside potential breaking out of a Head & Shoulder continuation pattern. Charles Schwab $SCHW has a trend line breakout, while $MS Morgan Stanley is out of a cup & handle pattern. $SF Stifel Financials follow through out of the Parallel Channel looks good here.
Looks to us that it’s gonna be tough for major indices to make any progress here.
We like to watch the advance decline line as one tool to gauge the strength of the market. While the S&P 500 was making new highs, clearly most stocks were not. Matter of fact, the A/D line has been losing momentum!
How about the S&P 500 price chart? How’s that doing? Looks to be up against resistance!
Lastly, lets look at the number of new highs on the NYSE. Fewer and fewer seem to want to play!
Not the end of the world, but certainly not particularly bullish technicals.