SOX Semiconductor Index Daily Chart; Bear Market

The chips crumble into a bear market. SOX, the Semiconductor Index, topped out at 1464.61 on 3/13/18. A -20% drop is a bear market which is the 1172 level. SOX is in a bear market and first dropped into the bear in October.

Note the orange sideways symmetrical triangle pattern. Do yinz remember Keystone explaining this occurring in real-time this year? Keeping the math easy, the vertical side is a couple hundred points, so the failure at 1350 targets 1150 on the downside which occurs satisfying the triangle pattern. Chips are in almost every product made nowadays so the failure in early October, along with the broad stock market, predicted trouble ahead. To monitor the chips, you can watch tickers such as SOX, SMH, XSD, AVGO, MU, NVDA, NXPI, QCOM, INTC and QRVO. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.