IS THE KEY TO ANY MARKET TOP BURIED IN THIS PRICE TARGET FOR THE SOX?
Guess you can call me old school. I am a firm believer in the SOX being a leading indicator for the markets either on the bear or bull side of the equation. I will admit that the elegance of the SOX as an indicator has diminished somewhat over the past few years. It is still extremely relevant, however, as I will demonstrate here.
On November 25th of last year, I posted an article titled "A Study Of The Cyclical Nature Of The SOX Giving Rise To A 1-2 Month Price Target." Not only was that title unnecessarily long, but it may turn out to be completely accurate. Those who are constantly searching for that elusive short-term top to this market may be best served to pay attention closely to the SOX over the next few weeks.
The study was posted on November 25th with the SOX at 369. The 1-2 month price target posted was 420. A predicted rise of some 14%. As of the close Friday, the SOX is sitting at 403.
Here is a look at the original chart, with price target. This is followed by an updated chart as of the close Friday:
SOX 11-25-12
SOX 1-11-13
