50% Off! Beat the market in 2025 with InvestingProCLAIM SALE

S&P 500 Needs This Indicator To Breakout

Published 10/23/2019, 04:08 PM
Updated 07/09/2023, 06:31 AM
US500
-
EEM
-
EFA
-
SMH
-
semiconductor:S&P 500 Ratio

Is a leading tech sector about to send the broad market a key message? In our opinion, the ansswer is 'yes.'

This chart looks at the semiconductor:S&P 500 ratio over the past couple of years.

When the ratio peaked around March of last year at (1), numerous indices in the states (NYSE, Mid-Caps, Small Caps) and around the world (EEM, EFA) started to create a series of lower highs.

The Semi-SPY ratio is again testing the highs of early 2018 at (2).

Many indices in the states and around the world need this ratio to continue to move higher if they are to experience upside price action going into year's end.

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.