(That is an excerpt from the subscriber-only DecisionPoint Alert)
We seen a double prime on the Semiconductor business group (SMH) that appears very very like the NVIDIA (NVDA) chart. NVDA is clearly the bellwether for the group, and it seems the entire Semiconductors are feeling the ache. The draw back goal of this sample would take worth to a minimum of 239.00. That will be the “minimal” draw back goal.
Participation is lagging. You possibly can see what number of shares have misplaced help at their 20/50-day EMAs. The Silver Cross Index continues to be at a really wholesome stage, so, whereas many have misplaced help, they nonetheless have their 20-day EMAs above the 50-day EMAs. All will not be misplaced, however definitely the declining PMO suggests extra draw back.
SMH has been working scorching for the reason that 2022 low. It did see some corrections alongside the best way, and it seems we’re moving into for an additional correction. Thus far, this correction is just a 9.9% decline. We’d search for extra given the topping weekly PMO.
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Useful DecisionPoint Hyperlinks:
Worth Momentum Oscillator (PMO)
Swenlin Buying and selling Oscillators (STO-B and STO-V)
Erin Swenlin is a co-founder of the DecisionPoint.com web site alongside together with her father, Carl Swenlin. She launched the DecisionPoint each day weblog in 2009 alongside Carl and now serves as a consulting technical analyst and weblog contributor at StockCharts.com. Erin is an energetic Member of the CMT Affiliation. She holds a Grasp’s diploma in Data Useful resource Administration from the Air Drive Institute of Know-how in addition to a Bachelor’s diploma in Arithmetic from the College of Southern California.