Semiconductors Could Send Most Important Message Of The Year
Chris Kimble | Nov 18, 2022 11:01AM ET
Over the past decade, I 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, semiconductors.
Why? Because the semiconductor sector has been an important leader of the bull market since the 2009 low.
And, once again, it appears that the Semis may be trying to tell the market something important.
Today, we revisit the monthly chart of the . As you can see, the Semis have been in a strong up-trend. But late last year, the Semis tipped off the market that something was wrong and began heading lower.
This sell-off brought SMH back down to its six-year rising support before reversing higher last month. This reversal is seeing follow-through this month and has the Semis testing the topside of its one-year downtrend channel.
A breakout above this one-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.
What Semiconductors do by the end of the month could send one of the most important bullish/bearish messages of the year.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.