SMH (Semiconductor ETF) exceeded the suggested stop of any move above 70.50 yesterday for a 3.2% loss. Despite the trade exceeding the suggested stop, it still appears that the semis are poised for an imminent correction & remain one of the most promising sectors on the short side in the coming months. Note how this most recent marginal new high on SMH only extended the existing negative divergences that were already in place on the semis. A break above this minor uptrend line is likely to be the catalyst for a sharp move lower down to any or all of the former price targets.
SMH daily Nov 22nd