Monday May 20th, 2019 by Mike Paulenoff SMH (Semiconductor ETF) opened down 3.2% this morning, leaving behind a wide down-gap from 105.43 to 102.10. After the open, SMH pressed still-lower to an intraday low at 101.59, which we see fully tested the slightly down-sloping 200 DMA, now at 101.38. So far, the 200 DMA has contained today's weakness within a larger correction of 15.8% off of the 4/24/19 high. Also shown on the attached Daily Chart is the Exponential 200 DMA, now at 103.32, and which represents MA resistance on any recovery rally attempt. So far today, SMH has recovered from 101.59 to 102.82, but only has closed 22% of its opening down-gap, suggesting that buying pressure so far is relatively feeble. Inability of SMH to claw its way to 103.77 to close half the opening down-gap, which also will challenge and hurdle the 200 Day EMA will leave the Semiconductor ETF vulnerable to downside continuation that breaks the 200 Day (Simple) MA (101.32) in route to my next optimal downside target zone of 100.40 to 99.70. Bottom Line: SMH needs to take out 103.30/80 to trigger preliminary signals that a nearest term low has been established, however, in the absence of such "strength," SMH points to 100.40 to 99.70... Last is 102.00/01 $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. If you liked this article, please click the LIKE (thumbs up) button. Feel free to leave any comments, question, or opinions. Follow us and check back occasionally for additional articles or comments.