Chart of the Day - Tuesday, March 19, 2024
March 19, 2024
🏆 Today’s Chart of the Day was shared by Trend Spider (@TrendSpider).
- Semiconductor stocks have led throughout the bull market, however, they've begun to stumble over the past week.
- The Semiconductor ETF ($SOXX) has corrected -8.8% from Thursday's record high, after falling in 7 of the past 8 sessions. It's testing its uptrend line for the 4th time since the October low, and momentum indicators are rolling over from overbought conditions.
- TrendSpider also noted that April has historically been the 2nd weakest month for $SOXX since inception, with a win rate of 31% and an average return of -0.97%. Bucking this seasonal trend would be evidence of a strong underlying bid.
The takeaway: The leader of the bull market is at a fork in the road. $SOXX is testing a four-month uptrend line, while momentum has deteriorated. Seasonality is also bearish. If Semis don't fall apart here, it will be very bullish.