Alternation?
It was six trading days for the SOXX to fill the gap created on June 5th.
In a way, it did ‘alternate’ (discussed here) from the gap fill on the 4th; that filled within the day.
So, here we are. Fibonacci Day 8 from the SOXX all-time highs.
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The Danger Point®, trade mark: No. 6,505,279
Early Signs
It’s never too early to start looking for a trend.
While there may or may not be a trading channel, what we do have, are inflection points at Fibonacci counts, 1,3, and 5.
Next up, is ‘Day 8’ (not advice, not a recommendaiton).
Let’s see what happens.
Note, the ‘hanging man’ and this update provided a heads-up on the reversal potential.
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The Danger Point®, trade mark: No. 6,505,279
Weak Gap-Close
If the current situation holds, the gap-close attempt in the SOXX, has failed (not advice, not a recommendation).
A short-lived upward spike in the morning session, was quickly reversed.
Anything can happen, the index could give it another try.
However, we see the situation unraveling on several fronts (A,I., and private credit), in real time, link here.
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The Danger Point®, trade mark: No. 6,505,279
Rule of Alternation
One of the many characteristics of price action behavior, is alternation.
‘What happened last time, is not likely to happen this time’ (not advice, not a recommendation).
The chart shows the previous gap being filled.
What are the probabilities of the current gap being filled?
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The Danger Point®, trade mark: No. 6,505,279
Just Like That
Yesterday’s ‘hanging man‘, indicated potential for reversal.
Today, it happened in a big way (not advice, not a recommendaiton).
At this juncture, anything can happen.
However, one thing seems to be a given; the A.I. clown show’s getting more bizarre, real-time: link here.
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The Danger Point®, trade mark: No. 6,505,279
Sort Of
What just happened?
Did the SOXX recover from the Broadcom inspired implosion?
Or is this a potentially failed attempt to reclaim the uptrend (not advice, not a recommendation).
Before we get to the chart, Ox Talks brings up a pivotal point, link here.
Paraphrasing, we have:
‘Everybody’s lying’
If that’s the case, why trust any ‘data‘ at all?
All of which brings us to potentially the only truth out there; the price.
Semiconductors SOXX, Daily
The ‘Secret’ Trading Signal
Performing a quick scan to find a decent description of ‘hanging man’ turned up the usual grifting suspects.
All of them, at least until I quit looking, were trying to turn this signal into a ‘secret’ method to trade the markets.
Needless to say, if you need a refresher, you’ll have to look for ‘hanging man’ on your own. 🙂
The actual pattern is not that big of a deal. It’s what happens next, that’s important.
What’s happening right now, as of 6:28 p.m. EST, in the after-hours, SOXX is eroding lower.
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The Danger Point®, trade mark: No. 6,505,279
Another (short) ‘Signal’?
The price action ‘signal’ at left, looks nearly identical to the one linked here.
In the case of Alcoa (AA), it continued lower for another day before the decline halted, then congested sideways.
Is that what’s going to happen with IWM?
Or, does the Broadcom implosion after-hours, potentially mark the beginning of the long awaited ‘correction’ (not advice, not a recommendation).
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The Danger Point®, trade mark: No. 6,505,279
Search Engines Rejected
It might be time to get out the popcorn.
There seems to be an implosion coming but from which direction (first), is unknown.
El, from ‘House of El – AI’, link here, has an astonishing (and well presented) report on what’s really going on with A.I. search engines and returned ‘content’.
‘Independent websites are where independent thought lives’ (time stamp: 10:40)
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The Danger Point®, trade mark: No. 6,505,279
Below Resistance
With all eyes on Broadcom’s earnings release scheduled for Wednesday, other markets in the sector are giving clues we may be near a reversal (not advice not a recommendation).
One of those, is Texas Instruments.
As can be seen, TXN has failed to move above resistance.
The question for Monday; will TXN quietly retrace upward to test the underside?
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The Danger Point®, trade mark: No. 6,505,279
Terminating Wedge
Broadcom is No. 3, in market cap within the SOXX.
Of those top three, it’s the only one in (a technical) position to move significantly higher (not advice, not a recommendation).
However, as the chart shows, that ‘higher’ is in the context of a terminating wedge pattern.
Patterns can fail or morph into some other type of event.
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The Danger Point®, trade mark: No. 6,505,279
