Piecing Together The Puzzle In The Sox

My Daughter is the socks queen. She wears them to bed, all around the hose and with few exceptions all summer long. She gave everyone socks for Christmas. Mine have polar bears on them. She does not like stripes on socks. That is like giving up on the creativity. She is a sock connoisseur. I believe she would like the socks above.

While I enjoy wearing my polar bear socks, I am a connoisseur of a different kind of socks. The socks I follow is the Philadelphia Semiconductor Index or SOX. I like the look of this SOX even better than the one’s my daughter gave me (don’t tell her). The chart below shows the reasons why.

The SOX started to move higher out of a symmetrical triangle in September. that move peaked in November and it pulled back to support. From there it made a broad channel with a higher high and then back to the same support. A second touch at the top of the channel and then a pullback, this time to a higher low. Now it has made a higher high Tuesday, above the consolidation. Wednesday morning looks as though it may pull back inside, but the break has been made. A continuation higher would now give a target to 1525 on the SOX to the upside. Momentum is on its side to continue higher. Lets see if it does.