Van Ek semiconductor ( not philly index) SMH

If my math is correct and SOXX hits 585 that would be a 15 to 16% drop in SOXS from the closing area around 45 that would be a 7.0 drop. A lot of people are probably shorting right at this level so they’ll try to pop it (SOXX) and blow out the weak hands either overnight or tomorrow morning.

The big moves in SOXS that tend to be near support seem to happen after hours taking the retail trader who doesn’t trade futures to the cleaners or causing them to miss out and pull their hair. I used to be one of them.

Not for nothing, but I tend to look at the Philadelphia semiconductor index rather SOXX for support levels.

And you also have to realize that SOXS is rebalanced every day at closing so the closing number can mean an entirely different thing once trading starts again. I’ve noticed that they are using SNDK as a proxy to move the needle on either direction while they harvest from the other chips.

..and the previous 2 posted 60m charts of SOXX:

I’ve repeatedly discussed how SOXS is among the most vicious of culprits of the entire spectrum of leverage ETFs when it comes to decay during anything but uni-directional trends (i.e.- periods oscillating between green & red daily closes) due to a combination of the -3x leverage coupled with the fact the semis are about the most volatile of all stocks/sectors within the major indices.

SOXX continues to zig-zag lower in a clear near-term downtrend with objective short entries, add-ons, or re-entries on this bounce back to the 555.40ish resistance and/or the 586.64ish resistance above.

As stated recently, until & unless QQQ clearly takes out that T1 price target/support zone on the 60-minute chart, the $NDX, along with the broad market/$SPX, remains in a sideways grind that is starting to approach the 3-month market. SOXX (and SOXS) is unlikely to start falling in a mostly uni-directional downtrend until & unless QQQ & SPY both solidly take out the bottom of their respective multi-month trading ranges, simply because the bulk of the semis (and the largest ones) are components of QQQ & SPY.

Here’s the 60m chart of SOXX highlighting the unmistakable near-term downtrend it’s been for the past month since the June 22nd top.