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Semiconductors Break Of Triple Support Sends Global Bearish Message

ByChris Kimble
Published 10/07/2022, 02:31 PM
Updated 07/09/2023, 06:31 AM

SMH Monthly Chart.

The stock market bounced a little bit this week but several sectors and indices are still in trouble.

One such sector is the tech leadership group, the semiconductors VanEck Semiconductor ETF (NASDAQ:SMH).

We have written no shortage of articles on this key sector. Check out these recent Semiconductor articles:

“Are Market Leading Semiconductors Reversing Lower Again?“

“Tech Stocks Leadership Reaches Important Trend Line Support“

Today, we share a critical update. The decline in the SMH is at an important inflection point. As you can see on the long-term chart below, SMH rallied to the 38% Fibonacci resistance level at the top of its falling channel before turning sharply lower.

That decline is testing key long-term trend support in its rising trend line as well as 200-day moving average at (2). Tech bulls need to put this on their radar now.

In my humble opinion, it is critically important that this leadership group holds support at (2). Stay tuned.

Latest comments

Do not bed agains Fed and tey to catch a falling knife! - higher interest rates are here to stay for atlesst a year- China 25% of th world will no longer use US chips in coming future- due ro super high $ there is massive depreciation in other currencies, so export will take a nose dive by end of rhis year - Basically while financial markets last 10 year run was buikd on low interest rates, its not coming nack any time soon.- market will keep moving 3 steps up and 5 steps down untill there is signal for end of recession which Fed is still teying to bring and failing gracefully
Sorry for too many typos😂!
Chris, it is 200 week not 200 day moving average. thank you
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