… And The Hard Place

As the chart shows, the SOXX has been struggling for weeks in the resistance zone.

From that chart, one question to be asked, did the overnight and early session fill the gap?

The other question, did the Nvidia earnings release change the dynamic of the sector?

Reading price action since then, in real time, the answer seems to be yes (not advice, not a recommendation).

Semiconductors SOXX, Weekly

As of this post (10:35, a.m., EST), the SOXX is struggling to post higher … but it’s not happening.

There’s a lot of congestion around the resistance zone. In Wyckoff terms, he calls this price action ‘Cause’.

Meaning, that if we break materially lower from here, it’s called ‘Effect’.

His point being, since there’s sufficient cause for a sustained move, if/when it happens, we’re to expect a corresponding effect (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