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Thursday, March 24, 2011

Potent Recovery Rally for SMH


The Semiconductor HOLDRs (SMH) is acting "very technical" today, as the price structure gapped up, thrusting out of a near-term, base-like pattern.

My near-term work argues that the SMH ended a significant correction at the March 16 low of 32.32, and has started a potent recovery rally at the very least and perhaps a new upleg in its larger bull trend from the August 2010 low at 24.14.

The price thrust projects a next target of 35.25/75. As long as 33.25 is not violated on any weakness, the pattern looks very compelling near-term.


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