Will Semiconductor Stocks Send a Trick or Treat Message to Tech Sector?

The 2022 bear market has seen the technology sector lead the market lower.

This is apparent when looking at the performance ratio of the Nasdaq Composite to S&P 500 Index.

Tech is extremely important to the broader stock market and has been a market leader over the past decade plus.

But as October comes to a close and the masses welcome Halloween, we look within the technology arena and focus on a key technology leader: The Semiconductors (SMH).

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Tech bulls and bears are asking, Trick or Treat?

Below is a long-term “monthly” chart of the Semiconductors Sector $SMH. A very clear rising trend-line has formed as marked by (1). This trend line has been tested several times at each (2) and held.

SMH is currently testing long-term support at (3) where it may be creating a “Doji Star” reversal pattern.

Trick (bearish) = tech leadership breaks price support at (3).

Treat (bullish) = tech leadership holds price support at (3).

It’s October 31st and the close for the end of the month seems quite important! Stay tuned!

$SMH Semiconductor Sector ETF “monthly” Chart

semiconductor etf smh price trend line long term stock market chart important month end october

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Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.