During the spring/summer decline of 2010, the market didn’t bottom until the $SOX index turned. Before that August/September turn, the $SOX had been the index to nowhere. Now it appears to have bottomed and if it truly has, then the key stocks within this index will continue to put upward pressure on the $NDX, $COMPQ, $RUT, and with INTC a Dow component, then the $INDU as well.
This chart is from Tuesday, September 13th, and as I write this the $SOX Index has already cleared the 50MA. A close above the 50MA, whether that’s today, tomorrow, or Friday, is key and would be have to be taken seriously.
Chart courtesy of StockCharts.Com