US Markets; Semiconductor breakdown a serious concern

Since the March high, the SOX index has been coiling in a symmetrical triangle and on Friday, closed below the lower boundary of the pattern to confirm a breakdown. This for me is a concern as to the future strength of US markets. As can be seen in the below relative strength chart of SOX vs SPX, the Semi's have been a leading sector in this rally and the breakdown from the symmetrical triangle is also occurring right at the 2000 highs, with bearish divergence on the weekly time frame as well.

The relative strength chart also shows a breakdown from a consolidation zone, another sign that we are likely to see at least relative weakness in the sector for the time being.

That said, the daily chart still shows a zone of support around the 1,200 - 1,220 area. Should that level break, we could be looking at a significant correction in the Semi's which would clearly bode ill for the US more generally. That now is the major level to watch.

This price action is one of a number of signs to me that we need to remain defensive in the US right now and suggests there will be opportunities on the short side in this sector and others.