The SOX Is Slipping Off QQQ’s Hoof

On Tuesday, I argued that the QQQ/tech train may come off the tracks.

The lynchpin of the QQQ's is the SOX, the semiconductor index.

On Monday, the SOX went into my weekly Minus One/Plus Two sell position.

This is because the 3 Week Chart is pointing down and Monday satisfied 2 consecutive higher weekly highs for the Plus Two part of my swing method.

The SOX responded: it is slipping below its 50 day line with authority.

Tech leads, and semis lead tech.

This move in the SOX below its 50 day, if it sticks, is a conspicuous blaring siren for the market.

It suggests that the DJIA/SPX 'breakout' was false -- like the breaks above the 50 day in February and March that perpetuated legs lower.

If so, this means that the SPX and DJIA have carved out bearish 3rd lower highs.

Fast declines are often derived from 3rd lower highs.