Intraday Flash - SOX
Note: the following analysis is formulated as an assimilation of Fibonacci, DeMark, Elliott Wave and other technical indicators. It is offered as education and not intended as advice in any way.
Yesterday's intraday flash suggesting that the corrective looking bounce in the SOX from the 10/18 lows was 90% complete or more. As of this writing, the SOX is making a slight new peak and we can say that its corrective bounce is at least 95% complete now. We noted yesterday that if another down-up sequence is in the cards, we'll add greater conviction to the bearish view on that new peak.
Today's bounce, unconfirmed by momentum is looking very much like "another down-up sequence". Important Fibonacci resistance targets are in a cluster of SOX 396-402 that should largely contain this bounce, as that area of prices contains a previous 4th wave peak and is bounded by the 61.8% and 78.6% retrace levels for the impulsive move down from the 10/4 peaks.
At these levels a good risk/reward set up in the SOX (and SMH) is provided based on our bearish analysis with a move through the 410 level negating this bearish near term call and causing us to stand aside (not advice).
n on this website solely reflects the analysis of or opinion about the perf=
ormance of securities and financial markets by the writers whose articles a=
ppear on the site. The views expressed by the writers are not necessarily t=
he views of Minyanville Media, Inc. or members of its management. Nothing c=
ontained on the website is intended to constitute a recommendation or advic=
e addressed to an individual investor or category of investors to purchase,=
sell or hold any security, or to take any action with respect to the prosp=
ective movement of the securities markets or to solicit the purchase or sal=
e of any security. Any investment decisions must be made by the reader eith=
er individually or in consultation with his or her investment professional.=
Minyanville writers and staff may trade or hold positions in securities th=
at are discussed in articles appearing on the website. Writers of articles =
are required to disclose whether they have a position in any stock or fund =
discussed in an article, but are not permitted to disclose the size or dire=
ction of the position. Nothing on this website is intended to solicit busin=
ess of any kind for a writer's business or fund. Minyanville management=
and staff as well as contributing writers will not respond to emails or ot=
her communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.<= /p>
Daily Recap Newsletter