The analysis featured in this video is from EWI’s April Global Market Perspective. You can read the entire issue in our State of the Global Markets event, now in progress. Look for the link below the video for instant access to Global Market Perspective when you join our Club EWI for $2 a month. (Not a typo. Just $2/mo.)

One of the hottest sectors during the stock market’s uptrend has been semiconductors.

During much of 2023 and the first part of 2024, notable stocks in the sector went almost straight up – like Nvidia. Here’s a headline from July 2023 (etftrends.com):

Semiconductor Stocks Are Hot — So Is Their Long-Term Outlook

However, our April 2024 Global Market Perspective warned of a trend change with this chart and commentary:

The wave structure in a key sector of the AI mania appears close to completing. … The rally from November 2008 [of the ProShares Ultra Semiconductor ETF (USD)] has traced out a clear [Elliott wave pattern, which has risen] to meet the top line of an Elliott wave channel. It is a classic look. … A significant trend reversal in such an important market sector should coincide with a decline in the broader stock market.

Since that analysis published, it’s been a rocky road for the broad stock market and the ProShares Ultra Semiconductor ETF has declined.

Any financial forecaster can project an existing trend into the future, yet the beauty of the Elliott wave model is that it helps investors to anticipate when that trend will end.

This April 19 headline sums it up (Investor’s Business Daily):

Nvidia Stock Plummets In Broad Market Sell-Off

Learn what our Global Market Perspective expects next for key stock market sectors, as well as for the main indexes, plus dozens of other financial markets around the globe.

 Indeed, you can see fully labeled charts and complete analysis inside EWI’s State of the Global Markets event, which is on now through May 3rd. You get full access to the latest issue of the Global Market Perspective and a host of practical Elliott wave resources.

The event is free to EWI subscribers and Club EWI members. You can join Club EWI and take part in this event for only $2 by following the link below.