Technology Sector Review: 7/1/25
Semi Pause? Things are not supposed to go up in a straight line. The semiconductors have shown overall strength since the early April bottom and against software has been firm for the last 8 weeks. Its 200-day SMA is starting to slope higher for the first time in 2025, and the 50-day SMA is quickly catching up, seemingly ready to record a bullish golden cross. Overall the group, via the SOXX, is still lagging 11% off its most recent 52-week highs while the IGV is just 1% off its annual peak. The daily chart below of the fund shows some dubious candlesticks late last week but PRICE is still charging higher. But it should have investors a bit on edge as a prudent pullback would be at least welcome. Of course, on Monday we have our MONTHLY candles but there is not much significant with the candles themselves, but notice with just the fourth touch of the rising 50 MONTH SMA in the last decade with the big reversal in April afterward PRICE tends to rise significantly (this should gravitate toward the overbought 85 RSI area which it did in 2017-18 and 2020-22). The WEELY chart did manage to register a breakout above a double bottom pivot of 237.61 last week and look for a powerful move into year-end. But there is no reason why this can not pullback a bit into the 225-230 range before the next leg up.