Option Investor
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I made mention earlier that the techs and even MSFT give me the impression that we've got another leg down coming in order to complete the bear market decline from October 2007. The weekly chart of the semiconductors that I've been showing each week in the newsletter shows the wave count calling for a 5th wave down.

SOX weekly chart:
[Image 1]

This morning I showed a potential diamond top forming for SPX although that's now suspect because of the break out the top of the pattern (with the move above 870 and now testing the April 17th high near 872). The SOX's daily chart shows a similar diamond-top formation and is close to testing the top of the pattern (downtrend line from April 22nd) near 254. It could get interesting from here as to which way it will break.

SOX daily chart:
[Image 2]

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