Semiconductors May Make A Stop Here

The Fed just gave us a twist with no QE.  The initial reaction was negative but now (1:05pm) the market is not only well off the lows but positive by 18 points.  If you believe that the lack of QE and the fact that we are overbought in the short term should lead to a pullback then you might want to look at shorting the Semiconductor Index.  At this point in time Telechart McClellan indicator is still short term overbought at +238 after closing at cautionary levels yesterday +322-see here.  As you can see below the Semiconductor index is bumping against its 200 day moving average and what was prior support that now should be resistance, the 390 level.  Ways to play this; short the SMH, or go long one of the double or triple inverse ETF’S like SOXS.


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