A.I. Bubble Implosion, Update

Before we start, it’s important to note as far as the mainstream’s concerned, all is well, Nvidia continues to ‘dominate’, link here.

In that link, there’s no serious discussion on what price action is actually doing.

For that, we have this update. 🙂

Since the last post on the SOXX, it has broken the trendline to the downside.

If we model this bubble against bubbles past, specifically the 2000s internet bubble, then the SOXX has started its long, potentially sustained, decline (not advice, not a recommendation).

Of course, anything can happen; Nvidia has yet to report earnings (scheduled for after-the-bell, today).

Semiconductors SOXX, Daily

The blue arrows are breakaway gaps, indicating bearish conditions (not advice, not a recommendation).

As of this post (12:10 p.m., EST), the SOXX is attempting to ‘spring’ upward off the penetration of the new daily lows.

This is normal market behavior; it’s what happens after the close that will potentially be most important.

Stay Tuned

Charts by StockCharts

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