Technology stocks have been a bona fide leader, repelling sell off attempts and pushing higher.
Same goes for the undisputed king of technology, the VanEck Semiconductor ETF (NASDAQ:).
But, we are at a critical crossroads for SMH (and the broader market).
Today we look at a weekly chart of the Semiconductors Sector (SMH) to highlight some recent concerns.
As you can see, SMH appears to be in a rising wedge formation with a momentum divergence (rising prices but falling momentum).
Using applied Fibonacci to the 2021 highs and 2022 lows, we can also see that price has slowed near the 261.8 Fibonacci level at (1).
It will be important to see what leadership does at (1). SMH has spent the past month kissing the underside of this 261% Fibonacci level. Will this mark a near-term top? Or just a level for consolidation. Stay tuned.
#Semiconductor #Stocks #Nearing #Inflection #Point
