Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

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
Tech Nation relaunches to champion founders
next post
Electric cars drive UK MG sales to more than £1bn

You may also like

One Year Anniversary Of A Very Bold Call

June 17, 2023

Sector Spotlight: Unleash The Power of Sector Analysis...

November 8, 2023

Combining RRG with the Turtle Soup Scan is...

August 19, 2022

Big Tech Earnings, Fed Meeting, Jobs Report: Will...

July 30, 2024

Week Ahead: NIFTY Stays In A Defined Range;...

May 31, 2025

The Ord Oracle January 24, 2023

January 25, 2023

DP Trading Room: Carl Explains the VIX!

September 26, 2022

Bitcoin, Politics, and Profits: What You Need to...

June 13, 2024

Which Top AI Semiconductor Stocks are Positioned for...

January 7, 2025

I’m Calling the Top in the S&P 500

August 20, 2022

    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.

    Recent Posts

    • Trump touts administration’s progress on peace deals, says world leaders ‘respect our country again’

      June 27, 2025
    • Venezuelan opposition member details harrowing 400-day captivity at UN

      June 27, 2025
    • Anxious Republicans turn to Trump amid divisions over ‘big, beautiful bill’

      June 27, 2025
    • JD Vance poised to clinch victory for Trump’s landmark bill as GOP finalizes strategy

      June 27, 2025
    • Trump secures record-shattering $1.4B for political war chest, will be ‘dominant force’ for GOP in midterms

      June 27, 2025
    • Fibonacci Retracements: The Key to Identifying True Breakouts

      June 27, 2025

    Categories

    • Business (8,329)
    • Investing (2,081)
    • Politics (15,841)
    • Stocks (3,175)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.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 futureretirementsuccess.com | All Rights Reserved