Semiconductors Ripped After POTUS Tweets About His Phone Conversation with Xi. One Day Wonder, or A New Bull Phase?

SMH (Semiconductor ETF)-- all eyes on 106.95-107.00 up to 107.85, which represents the most recent recovery rally high as well as the major resistance line off of the April all time high at 120.71. If SMH can manage to claw its way above the next $1.00 of resistance, then the SMH set up will be believing that a US-China trade deal is approaching sooner rather than later, and that the G-20 end of June meeting in Japan between President Trump and President Xi will ease tensions, bear fruit, and in particular, benefit US semiconductor companies that have suffered the effects of the Huawei G5 fallout.

My own sense is that I will believe a technology rapprochement between Trump and China when I see it, because technology is the key battlefront in the economic, financial, and philosophical confrontation between two superpowers-- and two powerfully nationalistic, egotistical leaders-- that will extend for the next 50 years. 

In other words, I will not be surprised if SMH failed in and around 107-108, and plunges beneath the May low at 97.61 into a major bear phase... Last is 106.73

6 18 19 SMH Day GIF
6 18 19 SMH Day GIF
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