PHLX SOX Index: Long term reversal
With heavyweight Intel getting hammered today, the outlook of the broader semiconductor index obviously gets dragged along. The already unconvincing outlook of the past months has taken a turn for the worst by breaking below cloud support at 1299. The minor internal trend line at 1272 is now scrutinized but a move lower seems a mere formality.
Focus is on the reasonable support zone at 1211 at first. Below that a new primary down trend takes hold towards 1122 (daily projection) and probably a lot lower on a 6+ month horizon. After all, the current breakout means the start of a multi-month corrective phase with very substantial down side risks.
Avoid any longs in the sector. New short-entries are justifiable as long as prices hold below ~1345 over the next weeks.
Near term trend: negative
Long term trend: neutral
Outlook: long-term reversal expected
Strategy: avoid/exit-long or trading short-entry
Support: 1272 / 1211 / 1122*
Resistance: 1345 / 1360+
Outlook cancelled/neutralized above 1345
Focus is on the reasonable support zone at 1211 at first. Below that a new primary down trend takes hold towards 1122 (daily projection) and probably a lot lower on a 6+ month horizon. After all, the current breakout means the start of a multi-month corrective phase with very substantial down side risks.
Avoid any longs in the sector. New short-entries are justifiable as long as prices hold below ~1345 over the next weeks.
Near term trend: negative
Long term trend: neutral
Outlook: long-term reversal expected
Strategy: avoid/exit-long or trading short-entry
Support: 1272 / 1211 / 1122*
Resistance: 1345 / 1360+
Outlook cancelled/neutralized above 1345
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