BREAKING: All stocks of the semiconductor index, SOX, are now trading below their 50-day moving averages, the first such occurrence since April 2025. This marks a sharp reversal from early-June, when all 30 components were trading above their 50-day moving averages. This comes as SOX has declined -18.9% so far in July, on track for its largest monthly loss since 2008. As a result, the index is trading -11% below its 50-day moving average, its widest gap since March 30th. However, semiconductor stocks are still up +63% year-to-date. Meanwhile, the semiconductor ETF, SMH, has posted -$1.3 billion in outflows month-to-date, on pace for the 2nd-largest monthly outflow on record. Chip stocks are becoming oversold.(The Kobeissi Letter)