SOX Semiconductors Daily Chart H&S Downward Channel Bear Market Over 20% Drop

SOX chart shows the February top and fall from 475 to 350, or 125 points, or 26%, that places the semiconductors in a bear market. Many traders use the 20% threshold to indicate a fall into a bear market. The semi's and financials have moved in locks step and their charts are very similar, financials are now in a bear market as well. We saw the top occur in real time, as forecasted, the rising wedge, overbot conditions and negative divegence (red lines) made the top call easy. Ever since February, a downward channel displays lower lows and lower highs, all bearish indications.

The teal H&S with a head at 475 and neck line at 410 targeted 345, exaclty Friday's intraday low so the H&S target was satisfied. Looking at the move over the last six weeks, price obviously tumbling, and the indicators (red lines) are weaker as well indicating that even lower prices will be explored in the weeks and months ahead. The green lines for stochastics and a somewhat mixed histogram want to see a quick snap back rally occur now and considering the quick drop, a dead cat bounce should occur now. Weakness will resume, however, for the weeks and months ahead, after any bounce occurs. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your financial advisor before making any investment decision.