Zeev: The SOX is trading near its 38.2% retrace level of the decline off the Sept 01 rally high in Jan of this year, as is the Naz Comp. The SOX should also find resistance from its Sept 01 lows price clustering, the price clustering produced as it test its Sept 01 lows in July of this year and from the August highs this year.
However, a move above 375 would be bullish, if done with the proper OS/OB balance. While I suspect a test of the 2002 Oct lows is probable, I would be surprised to see the 1998 Oct lows tested (182.59). Although, that test would not be a big stretch from the Oct 2002 low of (209.35)...
Regards,
LG
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