TECHNICALS-SMH

Just wondering if the end of the SMH run maybe be at hand. Back in July, I pondered a long with it appearing to have double/triple bottomed. Now, it also appears to be topping in the $34+ area where MACD Histogram is making a lower high as the price made a higher high.

Stochastics also looks overbought with the probable turn around lurking around the corner.

Another signal that the NAZ/TECH area may be topping is the recent lack of follow through on the ADV/DEC line. On Friday while the SPX and the DIA were moving up nicely, the NAZ advance/decline line was flat as it was on Thursday. I doubt any of the major market indexes are going to continue higher without the NAZ leading the way.

The action in the big financials continues to tell me that the markets are not home free as they continue to be a drag on the major indexes.