SOXX semiconductor ETF hits record 60% above 200-day average, signaling potential sharp correction ahead.

The iShares Semiconductor ETF (SOXX) surged to a record 60% above its 200-day moving average, the largest gap since its 2001 inception. This extreme stretch follows an 18-session winning streak and suggests the rally may be driven by technical factors rather than fundamentals. Investor Michael Burry has taken a bearish position with January 2027 puts, anticipating a significant correction. Historically, such a large gap either narrows through a gradual price adjustment or a sharp sell-off, with Burry betting on the latter within the next nine months.