Semiconductor index breaks at worst possible time

From the Market Ear:

SOX – from sexy to soggy

Over the weekend we flagged the risk of a massive SOX double top. Today, that risk is starting to materialise. SOX is slicing through the 50-day and slamming into its longer-term trend line. Lose this level and the downside gets ugly fast, with the 200-day still far below.

Just in time

Hedge fund positioning in North American semis got back to peak levels just in time for the biggest SOX puke in a very long time.

No bueno

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.