XLF – Financial Sector & SMH – Semi Holders update
Over the weekend I posted some thoughts on the indexes. The Financials & Semis have come the closest to breaking the levels I mentioned.
These levels are important because they signal that the recent trend of ‘higher highs and higher lows’ is broken. Now that doesn’t mean the trend is bearish all of a sudden. When those levels are broken, there is definitely a much greater likely hood of the short to intermediate term being bearish.
Take the semis for example (see below), I’d say they are neutral at best and bearish at the worst.
[...] SMH moved below the the up trendline of the ascending triangle type formation that was highlighted in last nights post. It has since trapped some sellers/bears below that level as it spiked underneath it on an intraday [...]
Market update & Watchlist for 4/16/08 « Trader MD said this on April 15, 2008 at 11:08 pm