Chip stocks are trying to bounce after a $2 trillion sell-off pushed the group back to the line between a pullback and a breakdown.
The PHLX Semiconductor Index (^SOX) is testing the same 12,000-ish area that briefly stopped the group in May, triggering a classic chart setup
An old ceiling can become a new floor, but only if buyers defend it when prices come back down. Buyers successfully defended the area one month ago. This embedded content is not available in your region.
For SOX, the line bulls need to hold is roughly 11,950 on a closing basis. For the iShares Semiconductor ETF (SOXX), the matching level is around 535. Hold those levels, and the bounce could easily extend toward 13,000 on SOX, with 14,000 the bigger wall above that.