New, Sharper, Downtrend?

Has the semiconductor SOXX, sent us a signal that’s it’s in a new steeper, downtrend?

The last update said probabilities favored continued downside for SOXX (upside for SOXS).

If there’s been a more aggressive pivot down, that trend looks like it’s being tested during today’s session.

We’re about two hours before the close; both the SOXX and its inverse SOXS, are posting reversal bars.

If the reversal’s going to be confirmed, there needs to be follow-through. That means, the next session (Monday) is the important one.

Since I am maintaining short this sector (not advice, not a recommendation), we’ll look at that position using the leveraged inverse SOXS.

Semiconductor Leveraged Inverse SOXS, Daily

The original trendline is shown from the prior update.

The dashed line is a potential new more aggressive trend.

If Monday opens gap-higher for SOXS (lower for SOXX), and then posts a new daily high, it’s a potential confirmation of that new trend.

Positioning.

Short via SOXS remains intact.

Hard Stop has been moved to SOXS 9.93 (not advice, not a recommendation).

Stay Tuned

Charts by StockCharts

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