The resurgence in the stock market over the past year has been tech-driven, as the COVID work-from-home theme picked up pace and shutdowns forced people to order goods and services online.

But lately, tech stocks have started to lose some steam and investors should take note.

Today’s chart highlights this, as we look at a long-term “monthly” chart of a key tech leader: The Semiconductors Index (SOX).

As you can see, the SOX Semiconductors Index has been in a rising uptrend channel for much of the past 13 years with the index testing the upper end of the channel during the past 4 months. It is also testing a very important 261% Fibonacci extension level at the same time/price (and with momentum at lofty levels).

It is also notable that the SOX has put in 2 bearish reversals AND 2 bullish reversals during this time. Looks like a heck of a tug-o-war at a long-term Fib extension level for this important tech index.

(Click on image to enlarge)