Semiconductors ($DJUSSC) opened 2023 with a BANG! They spent your complete month of February and the primary two weeks of March consolidating in a bullish ascending triangle sample, however right this moment we’re both going to get a confirmed breakout or a false breakout. It merely depends upon the place we shut:

Discover that the every day RSI has remained nearly solely within the bullish 40-70+ vary since October. That is a sign that semiconductors are trending larger. Clearly, the value chart is confirming it.

What’s necessary to know about semiconductors transferring larger, although, is that such relative energy sometimes accompanies a transfer larger within the S&P 500. Try this chart and have a look at the optimistic correlation within the backside panel:

I’ve highlighted the optimistic correlation area above 0.50 in blue and the unfavorable (or inverse) correlation area beneath -0.50 in pink. Try how usually these two areas are reached. There may be VERY robust optimistic correlation between the relative energy in semiconductors and the course of the S&P 500.

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Pleased buying and selling!

Tom Bowley, Chief Market Strategist, EarningsBeats.com