Semiconductors Below The 200 Day

One of the weakest groups today were the semiconductors. One of the weakest groups last year were also the semiconductors as can be seen in the above chart. Notice the massive bearish divergence between the S&P 500 and the $SOX. The $SPX made new highs but the semis made a much lower high. Today the semis broke out of it's 7 week consolidation to the downside and closed below it's 200 day moving average. I think the semis have a lot of room to the downside and it wouldn't surprise me if the $SOX tested the July 2006 lows.

PACT..At Resistance

PACT had a nice up day today on news that PacificNet Games Limited subsidiary has been selected by Jai Alai Casino in Macau to provide multi-player electronic gambling machines. The stock closed up 16% on heavy volume.

Right now the stock is at a big spot. Notice the 200 day moving average which is sloping downward comes in around 6.25. There is also significant reisistance here at 6.25. I think this is a key level to watch for. If the stock can post several closes above 6.50, the trend in my opinion will turn up, but until then the trend is down.