Chart of the Day - Wednesday, February 15th, 2023

Today’s Chart of the Day was shared by Shane Murphy (@murphycharts). It's a chart of the Semiconductor Index ($SOX) and its performance relative to the S&P 500 in the lower pane. Shane points out that Semiconductor stocks are attempting to break out of a 10-month base on both an absolute and relative basis. You know what they say about big bases..."the bigger the base, the higher in space!" The base also resembles an inverted head & shoulders bottom, with neckline resistance around 3150. A measured move from this bullish pattern would target the all-time highs around 4000. As you might know, Semiconductor stocks often lead the broader market higher or lower. A breakout here would further galvanize the bull case.