Software Holding Up Best:
Not that that means much on an absolute basis as both are trending lower, just that the IGV is giving up less ground than the SMH. Does that mean that the SMH is closer to a bottom than the IGV? Perhaps, but it is silly to anticipate, and better to look for examples of PRICE potentially firming up via bottoming candlestick patterns like an engulfing, piercing line or morning star. This at least gives one a good risk/reward area to play against. Over the last one and 3 month periods the IGV is essentially UNCH, while the SMH has surrendered 6% over the same time periods. The ratio chart below shows this theme and the IGV was never able to see any follow-through after a potent 3-week tight breakout from the 3 weeks ending between 7/14-28 that all CLOSED very tautly within just .77 of each other, and we know that type of coiling action often produces very powerful moves. So the fact that did not occur was a red flag. The SMH is possibly going to form a bearish WEEKLY 3 black crows pattern if Friday CLOSES in this area.