Those that follow our psychopathic ways know how important the semiconductors are to our work as they really do lead markets. Just go take a gander going back a couple of decades.

In recent weeks, the semis had been weak. The June 9th ugly topped them out. The July 5th action started a low. Just notice that this latest pullback has it hovering around the 50 day with the SMH moving off the 50 day. On top of that, leading names that had been acting iffy are up strong today…namely LRCX. As we scan all the names, we still don’t find much constructive but leave no doubt, if the semis do indeed turn up from here forming the right side of this range…and then move out, that’s it for the minor correction in the NASDAQ/NDX/SOX.

And for those that are asking… China ADRs are up big today…many moving into new high ground. Most held the 50 day recently. The problem is that many report in the next couple of days. yes…they are running them into earnings. Go figure. We are not that brave.