11:48 a.m., EST
By The Book?
SOXX chart: Like something from a book on trading
Price action’s struggling at new highs. MACD’s posting a bearish divergence. Can it get any better for the shorts?
(not advice, not a recommendation)
At least one thing missing (as of this post) is a new daily low. If we get that, it helps provide confirmation of a SOXX, top.
The S&P (SPY ) and the Dow (DIA), have both posted new daily lows as has the Russell 2000 (IWM).
We can also throw in Basic Materials DJUSBM (IYM), making a new daily low.
Recall in a previous update, empirical observation over the years; market tops tend to occur before, during, or just after a holiday week.
Looks like we may be there.
Charts by StockCharts