Money Control Place
  • Politics
  • Business
  • Stocks
  • Investing
  • Politics
  • Business
  • Stocks
  • Investing

Money Control Place

Stocks

Equal-weight Semis Break Down – Is SOXX Next? – with video (Free)

by October 16, 2023
October 16, 2023
Equal-weight Semis Break Down – Is SOXX Next? – with video (Free)

Today’s report will compare charts and performance for the Semiconductor ETF (SOXX) and the Semiconductor SPDR (XSD). SOXX represents large-caps and is holding up. XSD represents the average semiconductor stock and it is not holding up. Broad weakness within the semiconductor group is likely to spread to large-cap semiconductor stocks and SOXX. Note that we will cover this and more in tomorrow’s Chart Trader Report & Video.

Equal-weight Semis Break Down – Is SOXX Next?

The first chart shows SOXX peaking in late July and trending lower the last few months (red dashed line). SOXX remains above its 200-day SMA and the Trend Composite remains positive, but a bear flag formed here in October (blue lines). Flags are short-term continuation patterns. The prior move (September) was down so this flag is bearish. A flag break would signal a continuation lower and target a move to the next support zone in the 400 area.

The second chart shows a completely different picture. The Semiconductor SPDR (XSD), which represents the average semiconductor stock, is in a downtrend and underperforming. XSD is below its 200-day SMA and its Trend Composite is negative. The lower window shows the price-relative (XSD:SPY Ratio) below its 200-day SMA since mid August. This means XSD is underperforming SPY. Short-term, XSD broke flag support on Friday and this targets a move to the next support zone in the 175 area.

Large-caps semis (SOXX) are holding up for now, but relative and absolute weakness in the average semi (XSD) is a concern. I expect this broad weakness to extend to large-cap semis (SOXX). By extension, this would be negative for the tech sector, QQQ and the broader market (SPY).

Tomorrow at Chart Trader we will cover broadening weakness within the stock market, a handful of leading groups and some bearish chart setups (stocks). Chart Trader reports and videos are published every Tuesday and Thursday. Click here for immediate access.   

//////////////////////////////////////////////////

0
FacebookTwitterGoogle +Pinterest
previous post
Haley blasts House Republicans over speaker battle: ‘Get it together’
next post
Sensitive Sectors Continue to Prop Up the S&P 500

Related Posts

BEWARE! META, TSLA, AMZN, MSFT & AAPL Report...

January 26, 2025

DP Trading Room: Magnificent Seven Stocks in Bear...

April 1, 2025

Missed the AI Frenzy? Try This Promising Opportunity

June 14, 2023

Week Ahead: NIFTY Travels A Weak Rally; Stay...

June 17, 2023

S&P 4300 by End of February?

January 13, 2024

The Hoax of Modern Finance – Part 5:...

January 27, 2024

Weird Wednesdays for Put/Call Ratio

November 30, 2023

Stock Market Shifts Gears: Indexes Plunge After Climb

March 19, 2025

Buy the Dip or Sell the Rip?

April 24, 2024

DP Trading Room: How Bad Data From Major...

December 5, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    • Joe Rabil’s Undercut & Rally Pattern: From DROP to POP

    • RRG Alert Tech Vaults to ‘Leading’—Is XLK Signaling a New Rally?

    • Coelacanth Energy

    • Jeffrey Christian: Gold, Silver, PGMs — Short-term Prices and Key Drivers

    • Ericsson, Rogers Launch Canada’s First Underground 5G Network for Smart Mining

    • Crypto Market Recap: Bitcoin Price Stalls as Fed Holds Rates Steady, Circle Shares Jump

    Categories

    • Business (1,259)
    • Investing (2,583)
    • Politics (3,699)
    • Stocks (1,669)
    • Uncategorized (20)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: MoneyControlPlace.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 moneycontrolplace.com | All Rights Reserved