As I’ve mentioned endlessly, my favorite short these days is the semiconductor fund symbol SMH (which, appropriately, is Internet slang for Shaking My Head). The pattern isn’t done yet, but it could not be more clear what levels are required to (a) disprove this as a trade (b) affirm this as a completed pattern:
Looking at overbought/oversold indicators, it looks like there’s plenty of room left for downside:
The exponential moving averages are still bullishly configured, but the simple moving averages have finally achieved their first crossover to the downside:
