The semiconductor sector is approaching the key primary uptrend line support following the recent divergent high. The sector still looks poised for a significant correction with a sell signal to come on a break & close below these respective trendlines on the following three semiconductor ETFs; SOXX, SMH & XSD.
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- SOXX daily Sept 25th
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- SMH daily Sept 25th
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- XSD daily Sept 25th
Additional confirmation for a sell signal on the semiconductor sector will come on a breakdown of the largest semiconductor stock, TSM (Taiwan Semiconductor Manufacturing Co.). TSM is currently sitting precariously on its 2+ year, very well-defined primary uptrend line, also following a divergent high/bearish rising wedge formation & will most likely drag the semiconductor sector down with it.
TSM 2-day period 4-yr Sept 25th