Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Semiconductors Hit Hard As Micron Weighs On The Index

Published 12/01/2016, 11:10 PM
Updated 07/09/2023, 06:31 AM

Internet troubles have limited me Thursday night, but the one chart I want to show is the near 5% loss in the Semiconductor Index. Having escaped relatively unscathed from recent day's selling it was a whirlwind of action for the index on Thursday.

SOX Daily Chart


This had obvious consequences on the NASDAQ. The NASDAQ did relatively well to suffer just over a 1% loss. However, there were 'sell' triggers for On-Balance-Volume and Directional Index. There was also an acceleration in the relative underperformance of the index to the S&P. Bulls will look to the 50-day MA as a possible defense point.

COMPQ Daily Chart


The S&P managed to stay out of the crossfire, experiencing a relatively small loss with only a 'sell' trigger in On-Balance-Volume.

SPX Daily Chart


The Russell 2000 also took modest losses having been the first index to experience profit taking after extended gains. Technicals remain net bullish with no 'sell' triggers.

RUT Daily Chart


Semiconductors remain vulnerable to further losses as Micron Technology Inc (NASDAQ:MU) weighs on the index. Bulls can look to 50-day MAs to mount a defense, although such action would need to occur in early morning trading for the NASDAQ and Semiconductor Index as both indices finish with tags of these MAs.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.