This is apparent when looking at the performance ratio of the Nasdaq Composite to S&P 500 Index.
Tech is extremely important to the broader stock market and has been a market leader over the past decade-plus.
But as October comes to a close and the masses welcome Halloween, we look within the technology arena and focus on a key technology leader: The Semiconductors (SMH).
Tech bulls and bears are asking, Trick or Treat?
Below is a long-term “monthly” chart of the Semiconductors Sector $SMH. A very clear rising trend-line has formed as marked by (1). This trend line has been tested several times at each (2) and held.
SMH is currently testing long-term support at (3) where it may be creating a “Doji Star” reversal pattern.
Trick (bearish) = tech leadership breaks price support at (3).
Treat (bullish) = tech leadership holds price support at (3).
It’s October 31st and the close for the end of the month seems quite important, as a test of strong support is in play!