Chart of the day

Where do we stand fundamentally?

SMH is an ETF that tracks the semiconductor stocks. Semiconductors are leading the overall stock market higher and the latest results from the industry are showing that there is no slowdown so I expect the upside continuation in the individual stocks and NASDAQ as the overall Index.

SMH is going for a test of the strong previously reached 280 resistance. A break above this resistance could lead to an extension higher in the fifth wave to 306. The support for this move higher is 259.

An invalidation level of a third wave extension higher is 230. We need to see a confirmed break higher above 300 for even further fifth wave extension to be confirmed and a target of 340 to be reached.

_{Look for a long trade entry with a stop loss below 260 to target 280 at least.}