Semiconductors Remain Challenged, To Put it Mildly

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