Semiconductors Below The 200 Day

One of the weakest groups today were the semiconductors. One of the weakest groups last year were also the semiconductors as can be seen in the above chart. Notice the massive bearish divergence between the S&P 500 and the $SOX. The $SPX made new highs but the semis made a much lower high. Today the semis broke out of it's 7 week consolidation to the downside and closed below it's 200 day moving average. I think the semis have a lot of room to the downside and it wouldn't surprise me if the $SOX tested the July 2006 lows.