SMH price action implies continued downside through the 50% channel level due to lack of bounce momentum, targeting support at 509-503.63.

Now, what could give the Q's in the S SNP 500 more room to run is what's occurring here on the SMH. Just like on the cues, guys, look at this gap up over resistance. Resistance that on Friday was in play. The top of this old parallel channel and we just gapped up over it. Instead, we actually sold down and caught support on the top of it this morning and then rallied all the way up, pushing through this gap fill from August 17th. Now, here's where everything gets a little bit more interesting. Actually, before I flip that on, let me highlight the fact of this declining trend line right here that you see from the all-time highs on the SMH back on June 22nd. Notice how when I drew this, I drew it down to the next pivot. Notice how when price came up again, it attempted to go through, did not close above on the very next attempt, we actually got through. And then the following day, we didn't succeed in pushing higher, getting extension and away from that declining trend line. So, in turn, price just found its way going right back down. another one day up and then we had three days down. Now we have three days in consecutive pushing order upward on the chart. This is the first time this has happened since the all-time highs. So right here, this is a big change in character. We're now starting to confirm a breakout from this declining trend line. Then when I flip over the simple moving averages, guys, the blue is the 50-day moving average. This is the first time as well that we've gotten now two daily candles pushing up consecutively and closing above that 50 simple moving average. Now guys, what this does is it turns on the buy switch for a lot of other institutions, a lot of which refrain from buying any sort of stock or index until price action can get properly above the 50-day moving average. Now, there's a couple more moves that are required for more institutions to hop on board, and that would be this yellow 20 moving average that's currently sitting at $55,960. If that were to get above the 50, and then that kickstarts even a bigger rally and push higher up on the SMH. Now, the SMH is, as you may recall, I've said this is my leading indicator. So, right now, I've got a positive signal telling me that we have a breakout on our hands. Now we watching for tomorrow on the breakout from this inclining parallel channel. Putting in a daily close higher than today would accomplish that next resistance 60758 from that point. Watch for any sort of uh retraces to the top of the parallel. That could be your buying opportunity to continue with this rally. But be mindful of these moving averages and the details that I just went over for you on this chart to ensure we remain in bullish uh momentum when you're buying the SMH.

All right, next up into the SMH. We see the SMH on the daily time frame did finish positive. You see this? It was one in the green today. So it was up.1%. We were higher throughout the course of the day, even higher than yesterday's high of the day uh too. But what did we do? We settled in again right here on this 50% area of the parallel channel. That I remind you too, we tagged precisely on the way down yesterday, bounced up and since have really just settled in right here on top of that 50% area of the parallel. Normally that's not really good, guys. You want to see a big fall, hit a level of support, and then start producing momentum for a bounce so it can go back up and attack the resistance that's ahead of it. Instead, we're just lingering right around on top of this uh 50% area of the parallel. Like, if we didn't have the FOMC tomorrow, I would be much more bearish, saying that this price action is actually implying we're going to continue to go down through the 50% area of the parallel. Now, if that is the case, where would we go? Well, a clear destination would be right down here at the bottom range of this parallel channel right at 509. And if we zoom over here to July 29th, we can see we got very close to that range at 50363. So, right around 509 to 50363 will be an awful lot of support on the SMH. to the upside. Getting above this declining trend line will be the first test in front of SMH at 555 and 17