Semis On Standby:

No one has to be told how vital the semiconductors are to not only technology but the overall market. They are in basically everything we use and we may have gotten ahead of ourselves with the importance to the AI recently, but the group will be tested here. The 10% haircut NVDA took last Friday did not feel normal, yet market forces are back in buying mode. Of course, that is a very myopic view as that occurred just 2 days ago. But other examples were TSM slumping 5% on a supposed “good” number on 4/18. Another reason why technical analysis matters to me, as PRICE is omnipotent. The chart below of the SMH recorded a bullish harami candle Monday and did follow through to the upside Tuesday adding 2.4%. We will hear from TXN tonight after the bell and the WEEKLY chart trades very wide and loose, hallmark bearish traits. LRCX describes round number theory succinctly with three rejections at the very round 1000 number each with a bearish candlestick including the gravestone doji on 3/21. Thursday INTC will report after the close and this one has been the dog now one-third from its most recent 52-week high, and was actually down Tuesday on a strong tape, although it did record a doji Monday. I think the SMH, and tech in general could have one more day of gains Wednesday, and then META GOOGL and MSFT could make or break the space. As for the SMH, I think it has room too the 50-day SMA and then we can reevaluate thereafter we see how it reacts.

This article requires a Chartsmarter membership. Please click here to join.