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)
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