Channel Support vs Breakdown
Analyst's reasoning:The SMH pulled back to the daily 20 SMA and is holding above 578-580. This is a bullish structure that could lead to a V-shaped recovery back to the 614-620 supply zone.
Analyst's reasoning:The speaker frames steep and deep moves as leaving too many “bodies behind it,” making the upside climb harder. With that kind of washout, reaction trades need confirmation instead of being treated as automatic rebounds.