The Semiconductor Massacre

SOXxed

It is hard to find superlatives to describe the SOX crash, with the index down 10% at the time of writing. The major trend line has given way, the 200-day MA is now far above current levels, and SOX is trading at its most oversold levels since the bull market began. The technical picture is awful, but things are getting so extreme that the contrarian in us is starting to consider dipping a few toes into the water.