Leadership in the Stock Market
One often highlights leadership in the market – stocks, sectors, and indices that pave the way upwards. Investing in such leadership during an upward market trend leads to profits, while keeping an eye on leadership can help avoid losses during market pauses or pullbacks.
Watching Semiconductors Approach Key Levels
Today, attention is drawn to the weekly chart of an influential sector: The Semiconductors Sector (SMH). Exploring a blend of seasonality and technical analysis, the VanEck Semiconductor ETF (SMH) is revealed to have hit a low on the first day of Spring 2020 (a favorable buying time), and a peak on the first day of winter 2021 (an opportune selling time). This year, signs suggest that Spring may have ushered in a prime selling period yet again.
The Retreat at Fibonacci Extension Level
Observing the chart, it becomes apparent that the Semiconductors ETF (SMH) is showing signs of a downturn. Notably, this descent seems to be occurring near the 161% Fibonacci extension level – a crucial point to take heed of. Coupled with the seasonal trend warning, this juncture signifies a precarious position for market leadership. Investors are advised to remain vigilant for further developments.