An Early Fall and Alphabet Soup for the Semiconductor Index
- Posted by Greg Harmon
- on August 9th, 2012
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.
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Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
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