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When The Soxx Turns Red

Published 04/16/2014, 10:29 AM
Updated 07/09/2023, 06:31 AM

iShares PHLX SOX Semiconductor Index

The Semi Conductor index is known as the (SOXX.O). The above chart highlights that when the Soxx index peaked and turned lower at (1) in 2000 & 2007, the S&P 500 soon followed this leader.

Currently the SOXX index is staring at its 38% Fibonacci retracement level and a couple of potential resistance lines at (2) above.

Bottom Line

When the Soxx turns Red, it often sends a cautionary signal to risk assets. Keep an eye on the Soxx in the next few weeks to see if it breaks out or if positive momentum happens to change.

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