Generals Continue In Full Retreat:

Any legitimate technology rally must include the semiconductors, and of course, tech weakness has been ongoing with the Nasdaq now down 30% from highs achieved at the very round 16000 number late last year. It is down more than 6% this week already, and if that holds would be the second-worst WEEKLY loss since the week ending 3/20/20. The semiconductors whether one looks at the SMH or SOXX are down in line with the Nasdaq and the second-largest holding in each of those funds is in the chart below in NVDA. This name is now 52% off most recent 52-week highs, without a 2:1 split (a weak stab at humor), and since the last week of November has gained ground on a WEEKLY basis just 6 times. It REPORTS earnings on May 25th after the close and this name like many others is in the penalty box and guilty until proven innocent. Stay cautious below the very round 200 number and short moves back into the bear flag breakdown which carries a measured move to 70.

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