The Semiconductor HLDRs (AMEX: SMH) briefly popped above key near-term resistance at 38.00/05, but did not sustain that level -- at least not yet. However, my near-term pattern and momentum work argue strongly that higher price will emerge in the upcoming hours that will propel the SMH towards 39.00/25. Intel (Nasdaq: INTC), Applied Materials (Nasdaq: AMAT), and Analog Devices (NYSE: ADI) will be the big drivers of the next upleg in the semiconductors.



Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com, a real-time diary of his technical chart analysis and trading alerts on all major markets. For more of Mike Paulenoff, sign up for a free 15-Day trial to his MPTrader Diary by clicking here.