SMH shows long term signs of troubleSMH fails to make new highs since July peak going into sideways trend. This paints a picture of a long term reversal to bear side coming
Comparing OBV trend with the March and July peak, we see that OBV diverges downwards while price continues indicating reversal
After severe sell off in August, we see that price trends sideways failing to make new highs
The sideways trend is during a typical rough time of the year, so weakness and volatility is expected
Nov and Dec normally bring in strong rallies
We could be simply looking at a pullback in time as ETF takes a breather from July peak, before rallying continues. The other alternative is that this may be distribution phase of a high risk sector preparing for a huge sell off.
