Rule of Alternation

The SOXX reversal from the July 11th high, to the Monday morning August 5th (panic) low, was chaos.

Wide price gaps, huge intra-day percentage swings.

Then, there was a rebound to the August 22, high when the next (potential) leg down started.

Note the difference in SOXX behavior thus far; a steady decline that’s orderly.

Semiconductors SOXX, Daily

So far, the SOXX is continuing its next leg lower in an orderly fashion.

There’s no telling on how long this will last.

Possibly, after the Fed announcement next week, one could expect a ‘change of character’ (not advice, not a recommendation).

Stay Tuned

Charts by StockCharts

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