Since the 2009 lows, Semiconductors have been taken a leadership role as they have far outpaced the gains of the S&P 500.
Gains since the 2009 lows; SOXX Index = +821% S&P 500 = +273%.
The SOXX index has spent the majority of the past 10-years inside of rising channel (1), which first started at the 2009 lows.
As the SOXX index is testing the top of this 10-year rising channel, it is also testing its Fibonacci 423% extension level of its 2001 highs and 2009 lows at (2).
This leading index would send a positive message to tech and the broad market if it would happen to succeed in breaking out at (2).
Stock bulls would receive a caution message from this tech leader if it started experiencing some selling pressure at this dual breakout test!
Keep a close eye on the SOXX index over the next few weeks, as this looks to be a very important long-term test for bullish leadership!