Semis On Edge?
The group within the diverse technology space has been a bastion of strength, while others struggle. Looking at the SOXX on a YTD basis it is higher by 19%, thrashing the 5% advance of the IGV. If the semis falter it could weigh on the overall sector. Here we can see how over the last 4 weeks (20 sessions) the XLK has been lagging, the worst actor of 11 and look at the defensive areas taking the lead in energy. utilities and materials. Peering at some of the more influential names in the space would reveal some bearish candlestick patterns have taken hold for the brave shorts to play against. AVGO, the second largest holding in the SOXX, recorded a bearish evening star on 3/5 (with a doji candle in the middle session). Fellow top ten holding in LRCX has seen trouble at the very round 1000 number with a bearish shooting star and gravestone doji candle there on 3/7 and 3/21 respectively. Other prominent names in the arena include MPWR, which registered a failed bull flag breakout, and now sports a bear flag. It is unclear if semis take a well-deserved breather that software may be able to take the baton as seen here on the ratio chart. Tech feels heavy and the semis may make that feeling more pronounced in the near term.