SOX Semiconductors Weekly Chart Sideways Symmetrical Triangle

SOX, semiconductors, show a sideways symmetrical triangle that has to make a decision now, there is no more room to move inside the triangle. And no one has to wait long. SOX will decide at the opening bell in the morning. Keystoen's proprietary algo is fixated on SOX 368.60. As Friday's drama played out, the end of day print is none other than 368.60. This is significant since if the markets want to venture higher, they can only do it if the SOX now strengthens by moving above 368.60. If the market bears want to step in and spank the indexes down from this Santa Claus rally, they must push the SOX under 368.60 when the bell rings tomorrow morning. Whichever way the SOX goes, so goes the broad markets.

The vertical side of the sideways triangle is 80 or 90 points so whichever way price breaks it will want to move that amount of points in the direction it chooses. Upwards would target a matching price high at 460-470. Downwards would target 280-300. This is high drama. Even the 200 week MA is stone cold flat not tipping its preference for bull or bear. The 20 week under the 50 week is very bearish. Watch price versus the 20 week MA and also the RSI and stochastics 50% levels to provide clues on SOX direction which, in turn, will signify broad market direction. With this type of chart neither long or short is desired, there are better sector set ups to play (utes, retail, energy, etc..) as described on the site. The SOX 368.60 level is the top market item to watch at 9:30 AM tomorrow since it will dictate broad market direction.