Semis Heavy:

And that statement in itself is not a declaration of a new bear taking over, infact it could be the start of some healthy digestion or a prudent pause. The SMH is up nearly 50% YTD, thanks in part to the massive move in NVDA the top holding in the fund at nearly 20% (shareholder meeting Thursday). I have said that the bearish candles do not matter until PRICE starts to confirm the weakness and that may be what is starting to transpire. The SMH is now on a 4-session losing streak and the last time that happened on 5/24, the 5/25 session jumped 9%. That is unlikely to occur again and the bearish harami cross from 6/15 may have been one too many bearish candles to handle. Below is the chart of AMD which did display relative weakness last week DOWN 4%, while rival NVDA jumped 10%. Perhaps that was the canary in the coal mine for the semis and time for the space to take a well-deserved breather. It is honing in on a possible gap fill from the 5/24 session which would be an initial touch of the rising 50-day SMA following the break above a double bottom with handle pivot of 100.04 from 5/16. If the stock can find some steadiness there it could be a good sign for the entire group.

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