Sideways Is Bears' Best Bet

Some, like Cahill, say that it is time for the industry to have its run. "I think semis are trying to turn and firm," says John Roque, chief technical analyst at Natexis Bleichroeder. "We think they are in a slow improvement period -- flat since October, and the sell side is not very fond of it."

Anadigics(ANAD Quote) jumped most on the heels of the Barron's article -- up 17.5% Monday -- while Atheros Communications(ATHR Quote) rallied 6%.

Other chip and related names like Lam Research(LRCX Quote), Qualcomm(QCOM Quote) and KLA-Tencor(KLAC Quote) added more than 1% apiece. The Merrill Lynch Semiconductor HOLDRs (SMH Quote) rose 0.5%.

Also generally bullish was a dose of M&A activity Monday. But once again, the dealmaking failed to boost the overall market. On the flip side, however, the price of oil rising to near $60 per barrel also failed to hurt the market.

Sideways seems the best the bears can get these days.

In M&A news, State Street(STT Quote) fell 6.5% on news it will buy Investors Financial(IFIN Quote) for $4.5 billion. Investors Financial shares jumped 27.4%. Triad Hospitals(TRI Quote) gained 14.7% on news the company will be taken private in a $4.7 billion deal.

Billionaire investor and agitator Carl Icahn entered the auto-parts game, making a $36-per-share offer to buy Lear(LEA Quote), which jumped 11.5% on the day.

From an economic data perspective, the market had nothing to drag down the mood either. The Institute for Supply Management's report on activity in the services sector rose to 59, much higher than consensus expectations for a reading of 56.7.