Intraday Technical 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.
In Monday's note I stated that I was close to identifying a potential bottom in the SOX if we got one more "up-down" sequence from whatever low formed on Monday. Today's bounce constitutes the "up" portion of the expected "up-down" sequence. And therefore, the new low that is now registering should be the final 5th wave of the move down from the 7/21 peak AND 5 down from the 6/30 peak as well.
This suggests that an uptrend could begin right here unless levels drop below SOX 380-385. Though the intermediate term trend is less clear (that is, whether or not this bounce is merely a mean-reverting bounce to work off the oversold position before we go lower or is some more material trend change), the short term is clear. So I'll stick with short time frames and close eye on the levels mentioned above until we get more evidence about the larger degree trend at work here.
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