SOX PREDICTING

One of the old sayings on the street is that Semi stocks are leading predictors of future economic activity and future prices. Well looking at the three year charts it certaintly looks like the SOX is unhelpful as it seems to go its own way. So just maybe the recent plunge from 550 to 420 doesn't mean a whole lot to the overall market. Techs and NAZ yes, S and P's and DJIA probably not.

And if you don't think 50 day SMA's are lagging indicators, check it out on the SOX as it just now starts to slope downward as it sits at 480 with the index at 420.