SOXQ - Checking Up On The Transports And Semis

2023-10-21 00:30:00 ET

Summary

• The Transports and the Semis are two groups typically viewed as "leading" indicators for the broader market.
• While the Transports (Dow Transportation Index) are now up 15.3% compared to the S&P 500's gain of 19.5%, Semis (Philly Sox Index) are still up significantly more than both with a gain of 54.1%.
• While the steepness of the outperformance for Semis faltered a few months ago, we haven't quite seen the bottom of the uptrend channel significantly break down yet either.

The Transports and the Semis are two groups typically viewed as "leading" indicators for the broader market. Below is a check-up on how the two have done since the S&P 500's bear market low was made on October 12th, 2022.

While the Transports (Dow Transportation Index) are now up 15.3% compared to the S&P 500's gain of 19.5%, Semis (Philly Sox Index) are still up significantly more than both with a gain of 54.1%.

Below is a look at the performance spread between the S&P 500 and the Semis since the 2022 bear market low. While the steepness of the outperformance for Semis faltered a few months ago, we haven't quite seen the bottom of the uptrend channel significantly break down yet either.

It's getting very close, though, so this relationship is one to watch in the near term.

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Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.

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