The iShares PHLX Semiconductor ETF or (SOXX) is a popular trading vehicle. Let's check out the charts and indicators this morning to see if there is any green shoots for a recovery or bounce.
In the daily bar chart of the SOXX, below, we can how prices have quickly declined over the past six weeks. From around the $270 area in the middle of February to around $170 this month.
The trading volume has surged sharply as some traders and investors voted with their feet and dumped long positions. The daily On-Balance-Volume (OBV) line worked lower but not sharply lower suggesting that there may have been some buying during the decline.
The 12-day price momentum indicator or study has been making lower lows from late February telling us that the pace of the decline has not slowed down yet. A slower pace on the decline would be a positive technical sign and tell us that prices are down in an area where investors are being attracted again.
Bottom-line strategy: The SOXX will need to show some stability and some of the heavier weights in the ETF will need to show some strength. If these conditions come together we should soon see a recovery rally.