For much of the last several years, semiconductors have been a leading group of the broader market to both the upside and downside. Therefore, it shouldn’t come as too much of a surprise that the S&P 500 has rallied off its earlier lows after the semis opened the day right around the unchanged level and have rallied from there. The chart of the Philadelphia Semiconductor Index (SOX) over the last year also bodes well for the overall equity market. Since its late May lows, the SOX has carved out a solid uptrend line with a series of higher lows, and while you have to squint closely, it has also made two higher highs relative to its high in April. Also, just today the group is looking like it is close to breaking its short-term downtrend that has been in place since the most recent marginal new high in early September. If that short-term downtrend breaks, the rally in the broader market will likely continue to have legs. Start a two-week free trial to Bespoke Institutional to access all of our research and our popular interactive Chart Scanner and Trend Analyzer tools.