$SOXX holding former highs.
Based on the action of leading semis (i.e. $NVDA and $AMD), I think this ultimately resolves higher.
That said, $TSM reports tomorrow. So, they could help determine the near-term direction of the group. pic.twitter.com/ClwnNZBDj8
— Justin Spittler (@JSpitTrades) January 18, 2024
🏆 Today’s Chart of the Day was shared by Justin Spittler (@JSpitTrades).
- Over the past three weeks, the Semiconductor ETF ($SOXX) has coiled into a narrow triangle pattern. Pressure is building for a decisive move or trend in either direction.
- This consolidation is occurring above the July highs (yellow line) and the former cycle highs from 2021.
- Earnings from Taiwan Semiconductor ($TSM) could act as a catalyst. $TSM is not a large component in $SOXX, but it’s the 2nd largest in the other popular Semi ETF, $SMH.
The takeaway: Semiconductor stocks ($SOXX) are nearing a decision point after weeks of coiling into a tight range—the direction in which $SOXX resolves will likely set the tone for the broader market.