After hanging in extraordinarily well over the past few weeks, the chips are pretty clearly breaking down today. As you can see on an updated daily chart below of the SMH (ETF for the semiconductors), we have a high volume selling affair, pushing price below both a multi-month support trendline, as well as the 50 day simple moving average. Support is likely to kick in around $33.60, the lows from mid-late January, but if that does not hold you can expect a push down to at least the 100 day moving average.
Whether the broad market can continue to hang tough with the semis breaking down remains to be seen. However, we just lost a group that had previously shown relative strength.
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BTW Chess, your call on ATML was spot on, if not a week early. Looks like death on daily, weekly and monthly.
Thanks. I was definitely early though.
I am making some nice coin off of it. Went half position ahead of earnings in case they FFIV’d, when it gravestone DOJI’d committed the other half. Love shorting parabolic stocks.