A Make-or-Break Moment for Semiconductors 🌤️ The Morning Print
Good morning!
One of the market’s most critical groups is threatening to break down from a head-and-shoulders top.
Let's take a look.
Semiconductors are a key cyclical industry, often viewed as a modern extension of Dow Theory given their outsized influence on economic activity.
The VanEck Semiconductor ETF (SMH) is now right at the polarity level of $375, which has acted as both resistance and support over the past several months.
If semis lose this level, things could quickly accelerate to the downside and are likely to get much worse.
You don't get bull markets without semis leading the way higher, but you do get bear markets when they are leading the downside.
This is the line in the sand for semiconductors.
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