Will Semiconductors (SMH) Reversal Send Bullish Message To Stock Market? – See It Market

Over the past decade, we have written A LOT about the importance of following the technology sector as a leading indicator of the health of the market. And, in particular, the Semiconductors.
Why? Because the Semi’s have been an important leader of the bull market since the 2009 low.
And, once again, it appears that the Semi’s may be trying to tell the market something important.
Joe Friday: “The facts, Ma’am. Just the facts.
Today, we revisit the “monthly” chart of the Semiconductors ETF (SMH). As you can see, the Semi’s have been in a strong up-trend. But late last year, the Semi’s tipped off the market that something was wrong and began heading lower.
This selloff brought SMH back down to its 6-year rising support before reversing higher last month. This reversal is seeing follow through this month and has the Semi’s testing the topside of its 1-year downtrend channel.
A breakout above this 1-year bearish channel would be the first short-term bullish message in nearly a year.
In my humble opinion, this is a big test for technology leadership. If the Semi’s can close the month above this downtrend line, it would send a bullish message to the market. Stay tuned!
Semiconductor Sector ETF “monthly” Chart
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Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.

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