Depressing Combination:

We spoke this week of the frail nature that AAPL has been exhibiting (it is now on its first 4-session losing streak since the start of August and CLOSED near lows), but what about the lagging nature of the semis? The group continues to lag the software space with the SMH now 10% off its most recent 52-week highs, almost double that of the IGV. This week is following suit with the SMH off 2% heading into Thursday and the IGV is essentially UNCH. If we are going to discuss the semiconductors all conversations start with the chart below of NVDA. This week is off 7% as it approaches the neckline in a bearish head and shoulders at the very round 400 number. If that is taken out it has a measured move to 300, which would have a profound impact on not just technology but the overall market too. Let us not forget this name traded from essentially the very round par number in October 2022 to 500 this August. It is due for a well-deserved rest. Will it get to 300, probably not but the market does its best to confound the most.

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