An Early Fall And Alphabet Soup For The Semiconductor Index
Dragonfly Capital | Aug 09, 2012 08:24AM ET
The Semiconductor Index, SOX, is rising up as the markets head towards the end of summer. The chart below shows the long move lower from mid March through to June, followed by a ‘M’ pattern that failed at a double bottom at 350 in mid July. Since then a rise higher and over all of the Simple Moving Averages (SMA) is looking to complete a ‘W’ pattern with a target of 445. The two and a half month move lower in the initial leg suggests that the symmetrical move higher will end at the beginning of October. The Relative Strength Index (RSI) and Moving Average Convergence Divergence indicator (MACD) both support this rise. Everyone is on board. From a seasonal perspective it may be putting your socks on a bit early, but they will be pulled up just in time for the fall weather.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my
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