SOX Bucks Selloff Again

The unusual strength in the SOX continues. I wrote about this last week. Tonight another example of how the market has performed when the SOX takes a leadership position. This time the comparison is to the SPX rather than the Nasdaq:

This is the 2nd time it has happened in a week. There have been only three other occurrences where the setup has triggered twice in a 1-week span. They were 4/10/96, 3/7/00, and 5/10/04 – all followed by nice rallies in the next few weeks.