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

VIX SPIKES! Is a Market Correction Coming?

July 19, 2024

Stocks Plunge with Key Earnings on Tap

April 30, 2024

The Ord Oracle May 9, 2023

May 10, 2023

Oil and Gas – Calling Crude Oil’s Bluff?

August 19, 2022

Pesky Breadth Divergence Persists

May 31, 2023

Stocks: “…a PERMANENTLY high plateau”?

November 18, 2024

Crude Oil at Major Price Low, Per COT...

April 13, 2023

Bonds Got Clipped. Now What?

November 5, 2023

The BEST Simple Moving Average Trading Strategy

February 5, 2025

Unlock the Secrets of Five Candlestick Patterns

November 30, 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.

    Recent Posts

    • Trump asks SCOTUS to uphold freeze on billions in USAID payments

      August 27, 2025
    • Three Years of Sounding the Debt Alarm at Cato and on the Debt Dispatch

      August 27, 2025
    • Trump Administration Rightly Attacks EU Tech Regulations but Tariffs and Censorship at Home Harm Americans 

      August 27, 2025
    • White House demands all Gaza hostages return home ‘this week’ amid stalled talks

      August 27, 2025
    • Bankruptcy, Hell, and Exit Barriers

      August 27, 2025
    • Trump’s DC Death Penalty Crusade Threatens More Tyranny of the Minority

      August 27, 2025

    Categories

    • Business (8,897)
    • Investing (2,246)
    • Politics (16,501)
    • Stocks (3,228)
    • 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