NDX & SMH Delivered the Warning Signal 🚨
Last Saturday, we analyzed the $NASDAQ 100(NDX)$ and the semiconductor sector ( $VanEck Semiconductor ETF(SMH)$ ), noting they were the primary elements capable of impacting the broader market should technology gravitate toward its gaps.
Specifically, we identified a magnet at 29,280 for the NDX, representing a -1.8% move from Friday’s close. It’s interesting that the index declined precisely -1.88% filling that gap before showing indecision during the afternoon session.
Furthermore, I highlighted the elevated risk for long positions in semiconductors, given the bearish formations in $Micron Technology(MU)$ $Advanced Micro Devices(AMD)$ $Taiwan Semiconductor Manufacturing(TSM)$. Ultimately, these stocks dragged the sector, and subsequently technology, lower on a day when non-tech sectors remained neutral to slightly bullish.
Regarding the $S&P 500(.SPX)$ , there was no weakness in its chart, but given the risk from the tech sector the central daily level (CDL) for today was anticipated on Saturday. The breakdown of 7,554 served as the initial warning before our central weekly level was also compromised.
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