Semiconductors ($SOXX) just printed its 3rd highest weekly red volume ever. History says bounce incoming.
The other 4 times this happened? Next week returns:
+7.60%
+10.46%
+9.57%
+5.95%
Average: +8.4%
Oh, and $SOXX is also down 9 days straight—tied for the longest losing streak in its 26-year history.
This is capitulation volume meeting extreme oversold conditions. Short-term bulls have a setup here.
Obviously past performance isn't a guarantee, but when you see historic red volume paired with a 9-day losing streak, the risk/reward tilts bullish for a relief bounce.
If you're playing this:
- Watch for a green day to confirm momentum shift
- Set tight stops below recent lows
- Take profits fast—this is a bounce trade, not a reversal call
Semis have been obliterated. Mean reversion says we're due.
The other 4 times this happened? Next week returns:
+7.60%
+10.46%
+9.57%
+5.95%
Average: +8.4%
Oh, and $SOXX is also down 9 days straight—tied for the longest losing streak in its 26-year history.
This is capitulation volume meeting extreme oversold conditions. Short-term bulls have a setup here.
Obviously past performance isn't a guarantee, but when you see historic red volume paired with a 9-day losing streak, the risk/reward tilts bullish for a relief bounce.
If you're playing this:
- Watch for a green day to confirm momentum shift
- Set tight stops below recent lows
- Take profits fast—this is a bounce trade, not a reversal call
Semis have been obliterated. Mean reversion says we're due.