The Semi Conductor index is known at the Soxx Index. The above chart highlights that when the Soxx indexed peaked and turned lower at (1) in 2000 & 2007, the S&P 500 soon followed this leader!

Currently the SOXX index is staring at its 38% Fibonacci retracement level and a couple of potential resistance lines at (2) above.

Bottom line….When the Soxx turns Red, it often sends a cautionary signal to risk assets. Keep an eye on the Soxx in the next few weeks to see if it breaks out or if positive momentum happens to change here!

How The Recent Decline In Stocks Looks "Eerily" Like Major Bear Markets Of The Past