Semiconductor Rally Near a Breaking Point

The Philadelphia Semiconductor Index (SOX) is more than 50% above its 200-day moving average and showing extreme overbought signals (RSI above 80, price above the upper Bollinger band), markers that have historically preceded sharp pullbacks. The rally appears driven by gamma squeezes from aggressive call buying (notably in Micron and AMD). While a brief upside is possible, the setup is unstable and suggests a meaningful correction could be on the horizon.