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Potential Chart Support Levels QQQ, SMH

This is a syndicated repost published with the permission of Slope of Hope. To view original, click here. Opinions herein are not those of the Wall Street Examiner or Lee Adler. Reposting does not imply endorsement. The information presented is for educational or entertainment purposes and is not individual investment advice.

I never like it when someone purports to be “the devil’s advocate”, because I figure I’m about to hear something I don’t want to hear. In spite of that, I’ll take on this role and point out a potential area of bullish support (which, God willing, will shatter and crush the spirits of evil bulls the world over).

Take note of where things are with the NASDAQ:

Prices are tightly hemmed-in within a small but important range. The bottom of the range is that green horizontal line. The top is the red line, anchored to the price gap from a few trading days ago. The principal bullish formation failed ages ago, so I’m not worried about that. A push above the red line, however, might stir up some buying since people will argue prices are – –groan – – “cheap”.

An important element to this is the semiconductor sector itself, whose demise has been a weighty anchor on tech in general. It, too, has crucial support that I’ve tinted not-too-subtly below. Until and unless we break this, it will continue to be a slug-fest.

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