As expected, the leadership of the semiconductor sector has become a precursor to new local maxima in the broad market. Since our first mention of the sector ETF (SOXX), it has risen in price already by 15% (S & P-500 for the same period, less than 4%). Is it possible to pause after such growth? Of course, and even likely. But the fact that the recent local maxima in the wide market are confirmed by similar maxima in terms of the SOXX / SPY ratio, increases the likelihood that the market remains in the «risk on» mode. In practice, this means that, despite possible setbacks and corrections, they are likely to buy back and bring the indices to new historical highs (the SOXX / SPY ratio is already there and with a large margin). And you can seriously start worrying about the “bearish” phase when a negative divergence forms between the absolute and relative dynamics of the semiconductors (the same as the one marked by green arrows at the end of December, but in the opposite direction).