The SOX Semiconductor index is unbroken and still on the potential market melt up/blow off plan. The daily chart shows the support critical to this plan.

RSI is fine above support, but the shaded area shows the level it dropped to in early February in case this ‘correction’ (so far just one big, scary candle) bites deeper as I suspect it will.

Meanwhile, in the event that SOX does hold support, the monthly view continues to show the Bollinger Band creep, which we have speculated could go hand in hand with a coming bull blow off (ala Silver 2011) in stocks.

The green line on the chart above is only everything for stock bulls.  If it fails, we could probably say goodbye to the market melt up scenario.  Here is a view of the SOX’ leadership to SPX.

There is going to come a time to short the market’s bounces – or remain in cash and/or counter cyclical assets – but that time is not yet proven to have arrived.  Watch the SOX among other leaders and indicators.