The semiconductor sector has been an important bulwark in the strength of tech stocks. Looking at the SOX, it’s look to me like it is fraying around the edges. There hasn’t been a negative crossover yet, but it’s getting close.
More specifically, take a look at what has happened to Intel. It gapped below an important breakout level, and its recently attempt to retake that level merely yielded a gap-fill. In other words: a failed bullish breakout.
A longer view of Intel reveals how important this bullish pattern is to the big picture.
Micron is somewhat similar. It’s in an uptrending channel……..
……yet closer inspection shows that, following a gap down, it may have broken its upside mojo.
For myself, I ramped up my short positions from 54 to 64, with only one ETF short: EMB.
