The semiconductor ETF SOXX is following the predicted downward move closely. SOXX is now at a critical support level at $151.50. I think it will likely break below the $151.50 support level.
I have revised the predicted path to now be below the $151.50 support level to chop out and go sideways at around $149. The primary reasons for this lower prediction is the PPO going negative as well as the Parabolic SAR giving a sell signal on Monday. We could go even lower and test the $147.53 support level but I prefer to wait for more market data before making that prediction.
It looks like traders are fading SOXX on any upward move and that’s likely to continue for the next week or so. If you do not know what fading is please review this lesson on day trading here.
Long-term I think semiconductors are the place to be as discussed in this article from Benzinga. But we are short-term swing traders and for us entry is everything. I think we can get SOXX at a cheaper price before the best 6 months of the year rally in November and the first half of December.