Semiconductor ETF (SMH) Likely Topped Out Per Technical Analysis

The semiconductor ETF (SMH) slammed into a major technical resistance level. This is based off a hidden trend line retrace. This trend line was support until price crashed through it, now price has retraced to that same line, which is resistance. In addition, the sharp bounce in the semiconductor ETF (SMH) retraced a perfect .618 Fibonacci level (from the all-time high to the recent lows).

This pushes probability to the downside for stocks like Nvidia (NVDA), Advanced Micro Devices (AMD) and Super Micro Computer (SMCI) and others in the coming weeks.

Based on a lower high, technical analysis has traders and investors watching to see if the sell off (likely coming) takes out the recent lows. If it does, a major trend change will have taken place with lower highs and lower lows.

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