$SOX: Green Volume Illusion & The Trap DooriShares Semiconductor ETFBATS:SOXXROW_PartnersHigher time frame candles can be outright deceptive if you only look at the color. This goes for Monthly, weekly, daily, etc,. Take today on the one hour chart. You see a massive green volume bar right at the opening bell. Looks like heavy buying at first glance, right? Drop down to the one minute chart and the real story appears. That volume was selling, with big players hitting bids and unloading right into the open. The hourly candle only printed green because price closed a hair above a steep gap down print. Even more recent, SAME THING. Now to the daily chart: The previous TTM divergence is completely gone. Momentum expanded straight down into aggressive selling. We are severely oversold with the daily RSI sitting down near 29. A major test is directly ahead at the ORANGE zone. That orange band marks the exact spot that held during the last big August test. If 465ish fails to hold, minor support sits at 45oish. Lose that, and the path opens wide for a trip toward the massive unfilled gap. The broader call that semiconductors were topping played out even harsher than expected. The trend remains broken, so staying cautious on the short side still makes sense. However, with conditions this stretched into major support, do not rush to chase shorts or blindly catch falling knives. Wait to see how the tape behaves at support. TGtg!