It's All About the Cubs Tonight, But Don't Forget the Sox

The Chicago Cubs will surely draw a huge audience tonight in Game 7 of the World Series in Cleveland. 

But before the opening pitch, the SOX, not the Cubbies' crosstown rival but rather the Philadelphia Semiconductor Index, may prove a vital role in whether stocks correct in a deeper manner that what we have seen heretofore, or instead keep pullback fairly shallow. 

On the multi-year chart of the SOX, below, the semis have unquestionably turned in a brilliant performance in recent years, clearing the post dot-com bust resistance. 

But now the SOX is contending with both the initial support after the bubble was popped way back in 2000, followed by that level converting into resistance, denoted by the light blue horizontal line.

When you factor in chips like NVDA which have been on a tear, it makes sense to key off the sector in terms of seeing if they do, in fact, experience an actual price correction or simply work off some froth by marking time sideways. The plethora of looming events, including today's and then December's FOMC, FB earnings, jobs number on Friday, and the election next week, all are additional risks. 

But the market is the final arbiter. And if fund mangers begin the distribute chips it ought to outweigh bullish macro forecasts in the near-term.

More in my usual Midday Video for Members.