Chart of the Day - Friday, September 8, 2023

Today's Chart of the Day was shared by John Roque (@daChartLife). While the popular Semiconductor ETF ($SMH) broke out to record highs earlier this year, the Semiconductor Index ($SOX) never officially cleared its December 2021 peak. Instead, $SOX has formed a potential double top on an absolute and relative basis. John points out that $SOX is below a declining 10-week moving average (red), and momentum (MACD) has begun to roll over. It's down roughly -7.5% from its July 31st peak and -11.7% from its all-time highs. Semiconductors led in the first half of 2023, but $SOX is at risk of falling another -10% before reaching potential support at its 40-week moving average (green).