Cycle Trading

Earlier this month we took a look at the semiconductors. We looked at how the semiconductors went through a 17 year consolidation from the 2000 high until regaining that high in 2017.

And since emerging from the 2009 Financial Crisis low, the semi’s have been one of the market leaders.

After breaking out to new highs in 2017 the semi’s backtested the 2017 breakout as stocks dipped into their 4 year cycle low back in December, 2018. The initial thrust out of the 4 year cycle low saw the semiconductors breakout above resistance.

The decline into the early June DCL caused the semiconductors to dip below the recent resistance level, creating a bear trap. Today’s update shows that the semi’s are delivering bullish follow through to breaking above the 1400 resistance level to begin its next leg up.