Semiconductor ETF Surges 6.62% on June 18, but RSI Signals Weakening Momentum

According to MarketWatch, the iShares Semiconductor ETF (SOXX) surged 6.62% on Thursday (June 18), hitting a fresh record close and marking its fourth all-time high this month. However, technical indicators suggest underlying momentum is waning.

The relative strength index (RSI) is displaying what analysts call a bearish divergence, where RSI peaks grow progressively lower even as prices reach new highs, signaling that each rally is consuming more bullish energy. BTIG technical analyst Jonathan Krinsky noted that momentum is "clearly weakening" and warned of "very high risk" of a short-term pullback toward the 50-day moving average, currently at 508.14 points—approximately 20.5% below recent closing prices.