Semiconductor has been garnering much media attention lately. The iShares PHLX Semiconductor ETF (SOXX), fell 2.53% Thursday to close at 145.13. The ETF however, still shows a nice gain of more than 18 percent YTD. Now the question is “whether recent pullback is a pause that refresh or a beginning of the end?” Below is an update look at a trade in SOXX.
The graphic below is from our “U.S. Market Trading Map”, show the near-term technical bias and trading ranges. As shown, the underlying is in a short-term bullish trend when the price bars are painted in green. The underlying is in a short-term bearish trend when the price bars are painted in red. The yellow bars identify period of neutral or sideways trading pattern. Additionally, the light-blue shading represents the short-term trading range. A move above or below that range is considered overbought (as represents by the red shading) or oversold (as represents by the dark-green shading). Readings above or below the red and green shaded areas are considered extremely overbought or extremely oversold.
Chart 1.2 – iShares PHLX Semiconductor ETF (daily)
Our “U.S. Market Trading Map” painted SOXX bars in red (strong sell). The ETF is testing support at the spring 2016 rising trend line following recent selloff. Money Flow measure held below the zero line since the ETF reached an important high in early June, indicating there was little buying interest. This is a bearish development, suggesting…Click here to read more.
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