Weekly & Daily … Bearish MACD

With the SOXX at 52-week highs, price breaking out above resistance, Fed announcement hours away, the index is showing signs of reversal, posting a bearish divergence on two timeframes.

Both weekly and daily MACD, show divergence.

Add to that, we now have the best ‘inter-Fed’ market performance since 2009.

Semiconductor SOXX, Weekly

The chart shows we’re at The Danger Point®

As this update is being created, the SOXX is pulling back slightly, from its early session up-side; currently trading (11:45 a.m., EST) near unchanged @ 544.39.

Positioning

As one would expect, short positions are already in-place (not advice, not a recommendation).

Entries via 3X Leveraged Inverse SOXS, @ 7.14 and 7.07; Hard Stop TBD, but likely to be today’s session low @ SOXS 6.97 (not advice, not a recommendation).

As a housekeeping note, all other market positions have either been closed or stopped-out.

At The Extreme

SOXX price action could continue higher from here. 

If there’s even a hint of renewed upside pressure, the existing short position is likely to be closed … quickly, possibly without notice (not advice, not a recommendation).

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.

The Danger Point®, trade mark: No. 6,505,279