The semiconductor sector has enjoyed a counter-trend rally for a few days, but my conclusion is that the broken trendline, as before, represents an important reversal point for this sector.
Keep in mind that the semis have been weakening even in a very positive environment in which the /NQ is vaulting to lifetime highs on a virtually daily basis.
Even so, the ETF for semiconductors, SMH, strikes me as singularly vulnerable to a decline.
This is illustrated in individual component stocks, each of which is expressing their own unique resistance to an important level of resistance, such as AMD:
ARM:
And the king of them all, NVDA:
For my own positions, represented here in Options Charts, I’m maintaining these puts.
