Jun. 4 at 10:10 PM
$SOXX $SOXL $SPY $QQQ $SQQQ
The semiconductor sector is currently displaying levels of technical exuberance that are impossible to ignore. With the SOXX trading at
$600 and the 200-day moving average (DMA) sitting at
$340, the ETF is stretched an incredible 76% above this key long-term support level.
Furthermore, the monthly Relative Strength Index (RSI) for the SOXX has climbed into the 86–88 range. This reflects a state of extreme overextension rarely seen in the history of the sector, drawing direct parallels to the unsustainable vertical momentum that defined the final stages of the dot-com boom. Michael Burry is certainly not off-base here; his focus on these deteriorating technicals is a necessary warning. He is right to bring this to the forefront, as the current parabolic price action is defying historical norms.