NVIDIA Corp (NVDA)

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Double Top on Semiconductors (SMH)
By: Erin Swenlin | July 19, 2024

We noticed a double top on the Semiconductor industry group (SMH) that looks very much like the NVIDIA (NVDA) chart. NVDA is clearly the bellwether for the group, and it appears all of the Semiconductors are feeling the pain. The downside target of this pattern would take price to at least 239.00. That would be the "minimum" downside target.

Participation is lagging. You can see how many stocks have lost support at their 20/50-day EMAs. The Silver Cross Index is still at a very healthy level, so, while many have lost support, they still have their 20-day EMAs above the 50-day EMAs. All is not lost, but certainly the declining PMO suggests more downside.



SMH has been running hot since the 2022 low. It did see some corrections along the way, and it appears we are going in for another correction. So far, this correction is only a 9.9% decline. We would look for more given the topping weekly PMO.



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