I sometimes get tired of reminding folks of the importance of technology stocks… and even more so, the Semiconductors Sector (SMH).
The Semiconductor Sector (SMH) lead the bull market higher for well over a decade… but this year they have lead the market lower, falling more than the S&P 500 and Nasdaq 100.
It’s fair to say that we pay particular attention to SMH, especially when it tests important support and resistance levels.
Today we feature a “weekly” chart of the Semiconductors ETF, highlighting a major test of price resistance. Not only is SMH testing its falling channel resistance, but also its falling 40-week moving average AND 38% Fibonacci retracement level!
Can/Will leadership breakout? Or breakdown?
The last two weeks, SMH has been essentially flat. I humbly feel where it closes this week, could be VERY important.