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Markets by Mike Paulenoff 5-23 - Semiconductors Remain Challenged, To Put it Mildly

Thursday May 23rd, 2019
by Mike Paulenoff

SMH (Semiconductor ETF) gapped down to a new corrective low at 98.50 this AM, and is now a full 55% off of its April high, which represented a 50% advance off of its Dec. 2018 low. As we speak, SMH is trading beneath BOTH its Exponential 200 DMA, now at 103.26, and its Simple 200 DMA, now at 101.28. Taken together, the two 200 DMAs form a powerful resistance zone that will thwart any forthcoming bouts of recovery strength.

As for the downside, the next optimal target zone is 96.00/50, from where I will be expecting some stability and digestion of the recent sharp losses in the Semiconductor ETF... Last is 99.52/53


$SPY $DIA $QQQ $SMH

Mike Paulenoff is author of MPTrader.com, a real-time diary of his technical analysis & trade alerts on ETFs for precious metals, energy, currencies, and an array of equity indices and sectors, including international markets, plus key ETF component stocks in sectors like technology, mining, and banking. Sign up for a Free 15-day Trial!

*  I really like Mike's charts and analysis. This is shared with my readers here via MPtrader.com  *


Disclosure: I may trade in the ticker symbols mentioned, both long or short. My articles represent my personal opinion and analysis and should not be taken as investment advice. Readers should do their own research before making decisions to buy or sell securities. Trading and investing include risks, including loss of principal.

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