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The semiconductors have been one of the weakest spots in this market. But is that a double bottom I spy on the semiconductor ETF?
It certainly looks that way. Especially with the second bottom being a beautiful hammer candlestick. If SMH can break above $33.50 decisively then I’d be even more bullish.
But even right now, there are other technical reasons for a bullish bias. On the Philly SOX index, 430 is a support level from the October 2005 bottom. Also, currently the sector’s breadth is horrible with only 20% of stocks in the ETF above 200 day moving average and about the same above the 50 day moving average. In recent times, this was ony more negative in the summer of 2004 when we had an intermediate bottom.
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