Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Advanced Technical Analysis - SOX update



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.


The SOX has now moved back to the 400-405 support area I identified on Monday. The very short term is a touch unclear: specifically if another up-down sequence is necessary for the SOX that takes prices slightly below the 400 level before a good bottom is formed. It is possible too that the low the SOX made at the close yesterday or any slight new low today could be the bottom of the wave B or wave 2 bottom. Either way, several bottoming indicators have registered including short term momentum divergences and Demark trend exhaustion indicators, suggesting that this area of 400-405 could substantially hold the SOX's decline and lead to at least another impulse leg up toward the next area of resistance in the 430-450 area.

Only a move below last week's low of 390 would suggest a more defensive stance. The analysis suggests that should levels continue to decline through 390, the larger trend down still has some room to play out on the downside. I still believe however, that a move into the 430-450 range is the next most probable move (not advice). What happens as prices approach that area will help me determine just how sustainable the bounce is.

< Previous
  • 1
Next >
No positions in stocks mentioned.

The informatio= 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>

Featured Videos