BUZZ-Nasdaq Composite nears year-long pattern resistance

** Nasdaq Composite nearing upper boundary of nearyear-long rectangular pattern; suggests risk for pullbackbuilding

** And action in semiconductor sector vs Compositecan provide early warning of potential instability

** Lack of SOX/IXIC ratio divergence into Jun index highs,added to confidence that Brexit slide would prove to be tail-endof market correction

** IXIC has surged nearly 11 pct since post-Brexit low, andnow nearing resistance line from 2015 peak (at 5090). Chart: http://tmsnrt.rs/29JAyfL

** Semiconductor sector has been a rally leader, andSoftbank offer to buy ARM Holdings adding togains ; SOX up 14 pct from post-Brexit low

** Despite SOX outperformance off late Jun lows, ratio hasyet to exceed its Jun peak; threatening to turn down

** Given ratio yet to confirm IXIC highs on approach ofpattern resistance, IXIC seen as vulnerable to some pullback

** Fits with risk building in S&P 500 as it nearsmajor hurdles

** IXIC has support in 4980/4960 area and shouldn't overlap4880 to maintain bull prospects

** Closing over 5090, with rising ratio, can signal furtherrun to challenge/exceed its 5232 all-time high