SOXX clearly took out that T1, first target/support level I recently shared on the daily chart. However, best to wait for /NQ & QQQ to take out the price targets/support levels (bottom of T1 zone on the QQQ 60m chart), before moving from an SOXX short to a (leverage-adjusted) long on SOXS, IMO.

/NQ popped that steep downtrend line I posted on the 60m chart this morning so that, plus the fact it hit & bounce off that price target (also the top of the T1 zone on the QQQ 60m chart), only makes it prudent to either wait for those support levels to clearly get taken out –OR– add to a QQQ short and (aggressively) and SOXS long (or just add to an existing SOXX short) on a bounce back to either to the first two overhead resistance levels on that 60m chart of /NQ I posted earlier today.

Although the semis just broke below their recent multi-month sideways range (T1 support on the daily chart of SOXX), QQQ remains within its comparable range & the very fact that it once again hit… and once again bounced off T1, only further validates that level as a significant support level. If QQQ, which is a tech-heavy index, chock full’o semis, continues to hold that support or rally substantially off it, that would be a net tailwind for the semis. As such, I want to see QQQ clearly take out today’s lows before adding to an SOXX short or an SOXS long.