Mike's Mid Day Minute is available to members on Monday, Wednesday & Friday evenings, with one article per week available to non-members. Members please login and see "Mike's Mid Day Minute" in the navigation menu towards the top of the page.

Downhill for the SMH?


After posting the BIG picture chart of the Q's, i decided to look at a major subset of the technology sector- the SMH... and frankly, I come up with the same sort of outlook. On Jan. 12th, at 40.64, the SMH appears to have completed a 17 month upside traverse of its rising price channel. All of the action since 1/12 represents the "journey" across the channel that eventually will end with a test of the lower channel support line, now at 33.85. Yes, despite the feel-good rally today, and suspicion that the Fed might have to cease and desist (and maybe reverse course), my technical work in the SMH leaves much to be desired on an intermediate term basis. At this juncture, if the SMH breaks this week's low at 37.63, my work will expect acceleration to the downside towards the lower channel support line. MJP 01/27/06 1:55 PM ET (38.193)

For more of Mike Paulenoff, sign up for a Free 15-Day Trial to his Macro Trading Charts. Or try his QQQ Trading Charts or his E-mini S&P 500 Trading Diary.

  • Action-Oriented Trade Set-Ups in Stocks & ETFs
  • Macro Analysis of the Broader Markets
  • Detailed Technical Guidance for each Trading Idea
  • Live Interaction w/ Mike & Our Member Community
  • And Much, Much More!
Join Now! - Special Offer!
Veteran Wall Street analyst and financial author, Mike provides detailed and timely analysis and trade set-ups on a range of markets. Read more...

Have Mike's “Out Front” morning analysis delivered FREE to your email inbox twice weekly!