Custom Search

Monday, August 17, 2009

Semiconductors and Energy: Major Divergence from Rest of Market

FN: Notice how this important technology index started diverging from the broader market indices? Even as the S&P 500 (SPX) attempted to make higher highs, the Semiconductor Index (SOX) simply rolled over. The bounce lasted two days and failed. This morning the SOX is gapping way below 290.

Energy (XLE) has diverged worse still. The highs reached in June around 57.70 when the SPX was at 950 were not reached again, even as the SPX powered thru to 1018. XLE is gapping below 50 this morning.

Both SOX and XLE are important leading indicators of a true economic recovery... and they are currently signaling weakness.

blog comments powered by Disqus