Thursday, March 16, 2006

Bearish on Semiconductors

The SOX's P&F pattern had a double bottom breakdown today with a target of 445 which calls for a drop of 50 points from today's close. The candlestick chart supports that bearish outlook with a bearish engulfing pattern and support violation. Next level of support is 480 which lines up perfectly with the 200 day MA.

I just did a quick review of all the semi stocks that I follow and I'd say 80% of them carved out bearish engulfing patterns for today.

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