As per Friday’s video, SOXX (semiconductor sector ETF) sell signal to come on a solid break and/or close below S1 (the intersecting uptrendline & 446.51 price support levels). Initial price targets & maximum suggested stop (if targeting T4) on the 60-minute chart below.
SOXX 60m April 27th
Should the semis carry much higher without triggering the aforementioned sell signal, this will remain an untriggered swing trade “setup”, likely to be revisited soon, especially if the recent parabolic advance continues without any meaningful consolidation first, with new trade parameters added at that time (i.e., entry trigger, price targets, suggested stop & preferred trading proxy).
As for now, my preference isn’t to use SOXS (-3x leveraged short $SOX) until & unless I can also make a stronger case for a meaningful drop in the broad market, including SPY & QQQ. The most likely potential catalyst to put the hard brakes on this rally would be a negative market reaction to any or all of the big earnings reports coming out later this week, with MSFT, AMZN, META, & GOOGL all reporting after the market close on Wednesday, followed by AAPL reporting AMC on Thursday. That’s in addition to the FOMC rate decision & subsequent press conference at 2:00 & 2:30 PM this Wednesday as well.