Semiconductor Barricade?
The semis, as we know, have been doing some of the heavy lifting inside technology, but the overall group has not been getting much help elsewhere. This week heading into Friday the SMH is lower by more than 2% and on its WEEKLY chart, if it CLOSES in this area, will be the second swift rejection from above the round 230 number intraweek. The prior time was the week ending 12/16 which CLOSED 21 handles off intraweek highs, and this week thus far is 10 handles off its peak made on Wednesday. Some leaders are acting well which should be paid attention to if the semis get their groove back as they will often be the most powerful going forward after showing relative strength and including RMBS. It is coming back toward a 39.44 cup base breakout pivot. Others that were shaping up as leaders were the new issue ALGM which attempted to break above its own cup base trigger of 34.24, and was above intraday Tuesday, but was unable to CLOSE above it. The chart below of the SMH shows it must break above the bearish 12/13 candle to get excited about the group again.