SOX Bleed into NDX, SPX and Global Tech Playing Out

U.S. Equity Strategy: Technical Indications Mixed; Outlook Remains Cautious

Remain Overweight Tech; Large-Cap Financials on the Cusp of a Breakout

NDX Trendline Crack and XLF Triangulation

Chart based progressive global trading strategies, Chart Partners

Thomas Schroeder

Chart based progressive global trading strategies

Chart Partners

Chart Partners objective is to discover medium-term cycle turns and profit opportunities before they unfold, within structural trends while preserving capital with clear degrees of risk. We have real return ideas. 

Markets are dynamic and trading systems must reflect this. It is crucial to determine underlying correlations and lead-lag relationships within global markets and the impact on linked instruments. Our weekly Chartonics product gives you short-term trading strategies that can be applied within the medium and longer term macro trends that are mapped out in our strategy updates. 

Our methodology fuses global market variables and isolates drivers in trends. We specialize in FX, index trade in NY and Asia with a focus on Asian stocks. 

Technical Analysis

Nasdaq-100 Stock Index / Technical Analysis

Tech has been a long pair theme played via the NDX. SOX index (SMH ETF used for trading purposes) has been the better performer but we are now starting to see weaker signals on a relative basis while eyeing absolute levels that would raise red flags given the lead correlation to the NDX.Sell volumes spiked on Thursday/Friday and warn there is sell pressure lined up above and near that gap zone outlined in the chart.Semi’s tend to lead the NDX cycle which leads the SPX. These levels are critical components for the broader US equity cycle.

Tech has been a long pair theme played via the NDX. SOX index (SMH ETF used for trading purposes) has been the better performer but we are now starting to see weaker signals on a relative basis while eyeing absolute levels that would raise red flags given the lead correlation to the NDX.Sell volumes spiked on Thursday/Friday and warn there is sell pressure lined up above and near that gap zone outlined in the chart.Semi’s tend to lead the NDX cycle which leads the SPX. These levels are critical components for the broader US equity cycle.

SOX Cracks that Would Impact the Global Tech Cycle