Semis Settle In
The Philadelphia Stock Exchange Semiconductor Sector Index (SOX) is beginning to show signs that a near-term bottom may have been reached. The SOX was hit hard early this month following a shallow bounce off the April lows. Last week the index fell below the April bottom while hitting its third straight monthly lower low. All the major indices, while weak over this same time frame, have not followed this trend. The downside for the semi sector has been stretched and could be the first to recover.
Last week, the SOX reached its flat-lining 200-day moving average. Just above this level is a major breakout gap left behind back on Jan. 18. The index surged over 5% that day, blowing past heavy resistance near the October/November double-top in the process. The powerful surge, sparked by Linear Technology's (LLTC) earnings, cleared the way for a fresh bull leg....159 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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