Not surprisingly, that led to more bullishness this week as SOX jumped above its 50-day ( ) on Monday. It’s also fought its way into the large candle from September 3, while NDX is only back to its September 10 range and SPX remains around its September 16 close.
The key pattern we want to highlight today is the sideways channel in SOX between September 4-25 because we’re now seeing a breakout above that consolidation range. This may create the potential for chips to lead other tech stocks. We could even see an accelerated move if SOX retraces the fast price action from September 3.
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