SOX (semiconductor index) technical outlook

The SOX index is one of the core parts of the NDX and therefore a good indicator in evaluating the overall picture. The first big wave down from July 2007 to March 2009 had a magnitude of 260 points. The current wave has a magnitude of 200 points so far. It is not necessary that the length of waves are equal – just to put it into proportion. The pattern I call personally a head and shoulder, although it is not in classic terms, gives a target of 230 we were at 223 so far. The final fact is the October 2002 low was 209. MY bottom line is that we need a final dive into the 210/20 area before the bigger counter-trend rally can start. The chart above is a weekly one and the daily confirms that we need 3 consecutive lower closes below 230 on a daily basis to complete this leg. Again, all adds up to the same conclusion – so be patient and do not rush in if you want to buy.

Advertisements

~ by behindthematrix on October 17, 2008.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

 
%d bloggers like this: