Checking in on the Semiconductor sector, where all the bear hype started in October, we find the weekly SOX at an interesting juncture. Of course you just knew – or should have known – that all the hype was going to get punished (enter the wonder bounce). But now we are near a triple top and some important resistance.
A lame looking MACD and RSI are green (above 0 and 50 respectively) but AROON is still trend down. The question remains whether that spike down in October was a scout for coming activity or the clean out prior to new upside hysterics once people find out that the Semis were after all, just fine.
I’d say SOX only proves its case with a bust up to new highs, a weekly MACD line trigger and AROON going green, which the previous two conditions would of course prompt.
