Chip stocks flip from red-hot to oversold as SOX sinks 17% below key average
The Semiconductor Index has whipsawed from its most overbought reading since 2000 into a deep oversold stretch in just five months. SOX now sits 17% below its 200-day moving average, the widest negative gap since April 2025 and the second-largest since the 2022 bear market, per The Kobeissi Letter.
- Original source: X account @KobeissiLetter.
- The source published it on Nov 10, 2026 at 2:18 AM.
- No second outlet has reported it yet. Treat it as a single-source claim.
- It comes from X posts, not a news outlet.
Thursday's session left the Semiconductor Index, SOX, trading 17% below its 200-day moving average, according to The Kobeissi Letter. That's the biggest negative divergence since April 2025, and only the second time it has stretched that far in the years since the 2022 bear market.
The reversal is stark. Back in June, SOX sat 75% above that same 200-day average, its largest positive deviation since 2000. Five months later, the index has flipped clean through the line and kept going.
Past meltdowns put the current gap in perspective. During the 2008 Financial Crisis, the metric plunged to -49%, and after the 2000 Dot-Com Bubble burst it hit -52%, per the outlet.
The Kobeissi Letter described the move as one of the most violent swings semiconductor stocks have seen in decades, with the index going from extremely overbought to oversold territory in just five months.
TopicsSOX · Semiconductor Index · The Kobeissi Letter
Source: x.com
Written by Paparazzi with AI. Not financial advice.