BUZZ-Nasdaq Composite nears year-long pattern resistance

** Nasdaq Composite nearing upper boundary of near year-long rectangular pattern; suggests risk for pullback building

** And action in semiconductor sector vs Composite can 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-end of market correction

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

** Semiconductor sector has been a rally leader, and Softbank offer to buy ARM Holdings (LSE: ARM.L - news) adding to gains ; SOX up 14 pct from post-Brexit low

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

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

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

** IXIC has support in 4980/4960 area and shouldn't overlap 4880 to maintain bull prospects

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