Semiconductor index leadership pointing down
That is what the chart says folks, bearish. The SOX is bearish in its abdication of bullish leadership in 2015 (top panel) and it’s weekly drop below the trend line and support (barring a good rally today). Several weeks ago we asked ‘bull trap or bull resumption?’ of the latest bounce. At this moment ‘bull trap’ is the answer. The Semis are very cyclical and should they break down we would be looking ahead to further economic weakening, not to mention stock market weakening.
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