12:03 p.m., EST

Underside Test of Resistance

The last update on SOXX, noted one thing missing was a new daily low confirming the reversal. About 15-minutes after that post, SOXX printed a new daily low.

Now, we’re in an underside test of the breakdown.

The daily close chart (above) shows price action coming back to the underside. This is how the market squeezes out risk of a short position (not advice, not a recommendation).

Yesterday’s update had a link to ZeroHedge about how the market ‘has to’ move higher this week; the ‘selling’ is finished.

A healthy way to view this type of information is to be aware of the source.

If it’s a major retail brokerage or trading firm, their own (internal) market stance is likely to be completely opposite their financial press release.

Let’s see what happens next.

We’re not looking to short the SOXX but it’s still an educational exercise to monitor the sector.

Stay Tuned

Charts by StockCharts

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.