Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Stocks

Are Semiconductors Ready for a Pullback?

by March 30, 2023
March 30, 2023
Are Semiconductors Ready for a Pullback?

After a bear market decline of nearly -50%, the Semiconductor ETF (SMH) has rallied over +60% out of the October low. The long-term picture still looks promising with the weekly PMO rising steeply above the zero line. But let’s look in a shorter-term time frame to see if there any more immediate problems.

This one-year daily chart helps us look more closely at the current technical conditions.

(1) To begin, price is hitting the top of a bearish rising wedge pattern.

(2) The rising trend lines from the October low have become more accelerated, making the advance parabolic and subject to a sharp correction.

(3) The PMO and OBV have bearish negative divergences — they are falling while price is making new 50-week highs.

(4) The Silver Cross Index shows that 84% of component SMH stocks have the 20EMA above the 50EMA, which is very bullish.

(5) The Golden Cross Index shows that 80% of SMH component stocks have the 50EMA above the 200EMA, again, very bullish.

(6) The Percent of Stocks Above the 20EMA and 50EMA is at 100%. This is as good as it gets, and presents vulnerability to a pullback.

Conclusion: SMH has a parabolic advance, as well as some negative divergences. Participation is excellent, but it is as good as it gets, which typically results in participation abating somewhat. In my opinion, SMH is setting up for a correction, but this does not rule out a final upside blow-off to cap the parabolic move. Now is not a good time to open new positions, rather it is a good time to tighten stops.

Watch the latest episode of DecisionPoint on StockCharts TV’s YouTube channel here!

Technical Analysis is a windsock, not a crystal ball. –Carl Swenlin

(c) Copyright 2023 DecisionPoint.com

Helpful DecisionPoint Links:

DecisionPoint Alert Chart List

DecisionPoint Golden Cross/Silver Cross Index Chart List

DecisionPoint Sector Chart List

DecisionPoint Chart Gallery

Trend Models

Price Momentum Oscillator (PMO)

On Balance Volume

Swenlin Trading Oscillators (STO-B and STO-V)

ITBM and ITVM

SCTR Ranking

Bear Market Rules

DecisionPoint is not a registered investment advisor. Investment and trading decisions are solely your responsibility. DecisionPoint newsletters, blogs or website materials should NOT be interpreted as a recommendation or solicitation to buy or sell any security or to take any specific action.

0
FacebookTwitterGoogle +Pinterest
previous post
The Best Form of MACD Divergence
next post
GNG TV: Charts Telling the Story of the Markets

You may also like

Energy Names Implode

December 9, 2022

SEC Greenlights Bitcoin ETFs: How This Major Move...

January 25, 2024

Sector Spotlight: Stocks and Bonds Both Breaking Major...

October 4, 2022

Mega-Cap Leadership

March 31, 2023

Major Shifts Taking Place As Lower Rate Bets...

May 18, 2024

How Market Breadth Indicators Can Lead You Out...

October 4, 2023

Investor Lessons from the World Cup in Qatar

December 21, 2022

Nasdaq 100 (QQQ), Communication Services (XLC) and Transports...

October 12, 2023

Buoyant Technical Setup In This CV Stock

February 3, 2023

200-Day Moving Average Confirms Bearish Phase

April 17, 2025

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Trump warns of ‘serious consequences’ if Elon Musk funds Democrats

      June 7, 2025
    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

      June 7, 2025
    • Musk deletes explosive posts about Trump and Epstein files

      June 7, 2025
    • House witness flips script on Dem who ambushed him during hearing with unearthed tweet: ‘Iceberg is ahead’

      June 7, 2025
    • Call with China’s Xi, and Trump-Musk exchange fueled barbs during 20th week in office

      June 7, 2025
    • Trump’s conservative allies warn Congress faces critical ‘test’ with $9.4B spending cut proposal

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,568)
    • Stocks (3,136)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved