— David Keller, CMT (@DKellerCMT) August 26, 2020
Today’s Chart of the Day was shared on Twitter by David Keller (@DKellerCMT). It’s a daily bar chart of the Semiconductor ETF ($SMH) over the past year. The top five holdings in this ETF include Taiwan Semiconductor Manufacturing ($TSM), Nvidia ($NVDA), Intel ($INTC), Advanced Micro Devices ($AMD), and Qualcomm ($QCOM). Semiconductors are the chips that power virtually every electronic device. Due to their widespread use, Semiconductor stocks are often thought of as a bellwether for the broader market and economy. David explains that it’s tough to be aggressively bearish on Stocks in an environment where Semiconductors are printing fresh all-time highs. He adds that momentum has been in a bullish range (RSI above 50) since April. Price action from this key industry group continues to favor the bull case for the broader stock market.