- Charts - 2011 - SOX Semiconductor Index Testing Neckline From Above   
==> TA Bible <==
Kirk Windsurfing at Palo Alto in SF Bay in May 2009
  Test of SOX Neckline From Above
SOX Philly Semiconductor Index
Book:  Technical Analysis of Stock Trends - The TA Bible

Return to home page and Charts page

June 17, 2011. This chart shows the  SOX Semiconductor Index  testing the neckline of a bullish  inverted Head-and-Shoulders Bottom (Reversal) pattern.   Will this mark the bottom or the start of something worse?

The PHLX Semiconductor Sector (SOX) is a Philadelphia Stock Exchange capitalization-weighted index composed of companies primarily involved in the design, distribution, manufacture, and sale of semiconductors.


From "Head-and-Shoulders Bottom (Reversal) pattern 
The "Inverted Head and Shoulder Pattern" marks a major trend reversal.  The pattern is made by three successive lows with the center low the lowest and the outside "shoulder" lows higher and ideally equal distrance from the neckline.  The neckline is formed by the hights between the shoulders.  The necline is often tested from above before the pattern takes off which gives conservative traders a second chance to buy the breakout.  
Click to order Technical Analysis of Stock Trends, the Bible for practitioners of technical analysis.


Recommended sites:
Note 1: Chart courtesy of at
Click for FREE sample of Kirk Lindstrom's Investment Letter

Return to home page