Chart of the Day - Wednesday, January 22, 2025

Patrick Dunuwila
January 22, 2025

Chart of the Day


🏆 Today's Chart of the Day was shared by Duality Research (@DualityResearch).
 

  • The S&P 500 Semiconductor Index is testing all-time highs after a false start this Summer.  
     
  • This is an equally weighted index. Therefore, it broadly represents 'the semiconductor industry' without being distorted by heavyweights like Nvidia ($NVDA), Broadcom ($AVGO), or Taiwan Semi ($TSM). 
     
  • The index broke out of a three-year Ascending Triangle in July before failing and correcting. However, it has reclaimed its former highs with stronger breadth, opening the door for a more sustainable breakout. 
     

The Takeaway: While many continue to search for a top in Semiconductor stocks, this equally weighted basket is just starting to emerge from a three-year consolidation phase. 

Filed Under: