SMH, the semiconductor ETF is the leader.
It pushed to a new all time high on Wednesday on an expansion in range
Leaving a 180 New High buy setup.
It had every opportunity to follow through.
But SMH struck high on the open and turned tail, closing at session lows.
No Bueno.
It’s not thrown out trying to steal second base yet, but breakage back below the green Bottoms Line at this point is a blaring sell signal as it will trigger an Angular Rule of 4 Sell signal (breaking a 3w point trend line).
Indeed someone big was selling many of the glamour techs shortly after the gap open.
Names include
WDC, STX MU and SNDK which all were faded on the open, rallied back but LRCX and COHR did not.
COHR should be on our short radar as it left a Soul Nazi sell setup.
FTAI in a runaway move tailed off leaving a Gilligan sell setup.
There was some conspicuous rotation into beaten up software names.
I should have used TEAM last for Thursday as a long day trade idea.
NOW finally caught a bid. CRM left a V Thrust long setup.
DDOG extended Wednesday’s V Thrust Pinocchioing its 20 day moving average.
ORCL is another beat up tech that may be set to push higher.
A daily ORCL shows what looks like 3 Drives to a low.
Wednesday’s low undercut the prior swing low and yesterday ORCL gapped above the prior low from December and closed above it.
Upside follow through on todays weekly closing basis would leave a weekly Soup Nazi buy setup.
Notice the Ghost Line that could magnetize ORCL to 190 and the 20 day moving average.
Theoretically there is room to 200-205 if ORCL can recapture the 190 level and the 20 dma..
If so it could be fast.
An hourly ORCL shows a declining Tops Line just above at 180.
Breakage over 180 that sticks opens the door to 185-186 for today’s OpEx.
Above 186 over coming hours/days should see ORCL pop to the open gap in the 190 region.
Market averages remain NEAR their highs. However the broader trend which in recent weeks has provide strong evidence of a reversal from up to down, has not been negated by Wednesday and Thursday’s action.
Going forward, after OpEx, market internals will be critical in determining whether the last two days strength is merely relief-driven or, the start of something more durable.
Leadership will be key in determining this.
See chart below that compares the MAG 7 with the DJIA
