Whoopsies daisies. It looks like the CHIPS have skidded out on the highway. Ponch! Ponch! The semiconductors have been the most popular girl at the dance but her fame is fleeting after it is discovered that she has two left feet. The chips move south after creating a textbook H&S pattern, at least so far.
The head is at 14630 and neck at 12200 so that is 2430 difference. Take that away from 12200 and you get 9770 as the downside target if the neckline fails. SOX is making that decision right now. It is bounce, or die, time.
Price comes down and fills that orange gap as it decides what to do. There are numerous other orange gaps that need filled down below so many that it looks like Swiss cheese. Did you know they started to put fake holes in the Swiss cheese? Next time you go to the deli counter, grab some Swiss and you will see the holes are perfect circles cut by a die-cutter blade. It probably takes too long to allow the cheese to form the holes naturally so do it the phony-baloney way. No one notices.
The 12200 support is key since it has held for a couple months and served as resistance in May. Will the chips fail right here and allow the H&S to play out and begin the popping of the AI bubble, or, will price simply bounce from here and say 'never mind' like Emily Latella? Gilda was great; she got screwed in life.
The entire fate of artificial intelligence going forward hinges on the chart above. Will it live, or die? The price drops to 12023, so this is a key number, and now rebounds to 12280 and more as the bulls try to pump the chips and stay out of trouble. Keystone is short the chips but the trade is flat after the choppy slop. State of Mind. 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.
Note Added Thursday Morning, 7/16/26: The battle at the 12200 neckline rages on. That 12023 was the LOD yesterday and price recovered to 12418, then stumbled into the closing bell at 12399.
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