The market continues to impress, as the major averages once again set new highs yesterday. The Nasdaq led the market higher with a 0.5% gain, bolstered by the strength in the semiconductor index. Our long position in Market Vectors Semiconductor ETF ($SMH) continues to run higher, and we are now up nearly 9% on this ETF swing trade with a very tight stop in place to lock in gains.

With the market extended in the short-term, our stock and ETF scans have not produced much in the way of actionable setups over the past few days. We continue to monitor the action in the Guggenheim Solar ETF ($TAN) for a low-risk entry point. Also, iShares North American Tech-Software ETF ($IGV) has also caught our eye after breaking out from a two-year long consolidation. The monthly chart below shows the recent breakout, followed by two months of basing action above the highs of the prior range:



On the shorter-term daily chart below, notice how the lows of the current base found support around $66, which was the high of the two-year long consolidation. When prior resistance levels are broken, they usually become new support levels in a healthy market.



After breaking the downtrend line of the consolidation, $IGV is now back above its 50-day MA, with the 20-day EMA about to cross above the 50-day MA. Note that the 50-day MA is also well above the 200-day MA. This trade setup is not actionable right now, and needs one or two weeks of tight price action above the 50-day MA in order to produce a reliable entry point.

Deron Wagner is the Founder and Head Trader of both Morpheus Capital LP, a U.S. hedge fund, and MorpheusTrading.com, a trader education firm.