Semis Are Running Out of Steam 📉 The Chart Report
Chart of the Day
🏆 Today's Chart of the Day was shared by Sam Gatlin.
The Equal Weight Semiconductor ETF just logged one of its worst sessions since the start of the decade, and is flashing a textbook bearish momentum divergence.
As Sam points out in his post, if price begins to roll over, the resulting corrective wave could be severe given the extreme volatility semis have experienced in both directions.
The weekly Relative Rotation Graph also shows nearly every sector besides tech in the lagging quadrant, and if tech begins to cool off, we could see a more sustained rotation into the rest of the market.
The Takeaway: Semiconductors have led this market higher and are now at risk of breaking down.
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