The Semis Are Not Okay PHLX SemiconductorNASDAQ_DLY:SOXholeyprofitSemiconductors are important. Let's not bore over the details but they are the rails for the train. They have a lot of sketchy setups. The Butterfly and 1.61 Failure and Capitulation If you do not know harmonics, you just need to know we are looking at a "M" shape and the butterfly pattern means it should reverse off the 1.61 of the middle bit of the M. As a harmonic trader, you may look at this chart and think this is a perfect expression of a butterfly pattern forming. This is the 2007 high. As a harmonic trader, you may say "that's not a butterfly, it made a new high in the C leg". To which I'd say, "Shh. You're ruining my story". Small spike outs in the wouldbe C leg can happen in the thing we're talking about. This went into the 1.61 area. Bounced a bit. Then the famous part of the crash happened. It's not a cherry picked example. I bet you I can find one in very recent times. How about BTC? Cheeky "C" spike out and then clear change of the action under the 1,61. How about gold? Different retracement (and I know Im really taking liberties with the "butterfly" rules here for purest rules - but these are harmonics inspired). Same result under the 1.61. How about the recent SPX break? Weird huh. So ... they semis. If they do that things ... that's end of days stuff. It's pretty alarming. ============================================================================== Multiple semi indices have already traded passed the levels of bullish butterflies. When they fail as bull patterns, they usually result in capitulations. Most often news driven. This has happened in almost every major crash event there has been.