SOXX reacted from our minimum target and it is looking for support

SOXX (iShares Semiconductor ETF) is passively managed to provide concentrated exposure to the 30 largest US-listed semiconductor companies. This includes (i) manufacturers of materials with semiconductors that are used in electronic applications or in LED and OLED technology and (ii) providers of services or equipment associated with semiconductors.

SOXX daily chart December 2021

SOXX chart above shows the impulse that we called on December 2021 that began in 2018. You can see 5 waves up and we were looking to complete wave ((5)) in 556.57 – 584.61 area. (If you want to learn more about Elliott Wave Theory, follow these links: Elliott Wave Education and Elliott Wave Theory).

SOXX daily chart March 2022

The ETF reached at 559.02 in our target area and reacted down. This completed the wave ((5)) of the impulse from 2018 and also wave III. The drop made 5 waves down bouncing at 433.28 forming a clear impulse structure as we called wave ((A)). Then SOXX rally made a corrective structure in 3 swings ending at 507.88 as wave ((B)). Currently we are developing the last wave ((C)) that could reach a minimum 381.82. This wave should build 5 waves down to structure a correct zig zag Elliott Wave pattern from the peak. Wave (1) and (2) are already done and we need 3 swings more down to complete wave ((C)) of IV and then continue with the rally.