S&P Semiconductors ETF $XSD is currently exhibiting a Squeeze Score of 93.7 and an even tighter Long-Term Squeeze Score of 95.7.
Here's what the chart looks like:
Semiconductors have been a clear leadership group throughout this cycle, even during the latest corrective wave.
At the index level, they have been coiling sideways, storing energy for the next major move. The longer-term structure remains bullish, suggesting this momentum reset is more likely to resolve to the upside.
That said, compression on the Strazza Indicator only informs us about the volatility profile of a security, not the direction of the trend itself.
