SOX>NDX>SPX Leadership Chain Continues to Weaken

First off, I don’t like that the signals are coming on the back of an uproar in trade. I’d rather they engage under cover of a complacent or even sleepy market. But the signals are what they are so I report them to you. The SOX→NDX→SPX chain is breaking down on the front end.

SOX/NDX ratio is dropping through the 200 day average today. We’ve had plenty of posts showing the sector in a down business cycle despite the recent highs in the the SOX index.

sox ndx ratio

NDX/SPX broke below the 50 day average and is trying to hold the 200. It’s intact. I look forward to clearing this trade noise to see what the heck we have here after they “sell in May”.

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