Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!

Answer To Techs Next Monster Move Comes From Here, Says Joe Friday

Courtesy of Chris Kimble

In any bull market, it’s important to identify sector leadership. That helps us trend follow on lesser time periods and to identify bigger inflection points on broader time periods.

Today’s focus will be on the tech-leading Semiconductor Sector (SMH). And as Joe Friday says, “The facts, Ma’am. Just the facts.”

As you can see in the first of today’s chart 2-pack, $SMH has traded in a bullish rising trend channel for well over a decade. In fact, the Semiconductors ETF broke above the upper channel resistance into 2021. And this breakout carried SMH slightly above its 261.8% Fibonacci extension level.

It is now retesting the 261.8 Fib and upper rising channel line (but this time as a confluence of SUPPORT). It will be important for bulls that this long-term leader holds at this dual support level!!!

When we turn to our second chart, we see a similar theme. This is a long-term ratio chart highlighting the relative strength of the Semiconductors (SMH) vs the S&P 500 (SPY).

Once again, we see Semiconductors gains strength from 2009 on. And in the past 5 years, a strong rising trend channel has formed. But a recent pullback in this ratio has the Semiconductors (SMH) “leadership” position testing lower channel support at (1).

So both the Semiconductors chart and the Semiconductors leadership ratio chart are testing key support at the same time!! We delivered the facts… and now is the time to watch the Semiconductors. Will support hold and the up-trend remain intact? Or will support break and take Semiconductor leadership with it? Stay tuned!

This article was first published for See It Markets.com. To see the original post CLICK HERE.

To become a member of Kimble Charting Solutions, click here.


Do you know someone who would benefit from this information? We can send your friend a strictly confidential, one-time email telling them about this information. Your privacy and your friend's privacy is your business... no spam! Click here and tell a friend!





You must be logged in to make a comment.
You can sign up for a membership or get a FREE Daily News membership or log in

Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!