$SMH upward mean reversion incoming…$SMH:1D
Signal sitting just above the -3SD (136.46) and needs to reverse trend in order to maintain the strength of the longterm linear regression trend at 0.91 Pearson R^2. Given the strength of the multi-year trend, an attempt at an upward mean reversion to the 161.17 price region is not unreasonable to expect going into the end of the year.
I would expect resistance at the 0.5 Retrace (148.69) to the upside and trend could withstand a move down to the 1.382 (132.93) before trend began to ‘shatter’.
We have a minor bullish price/RSI divergence with price printing lower lows and RSI printing higher lows.
Price correlation to AMEX:SPY over the last 50 trading days is very strong at 0.88. Returns correlation to the AMEX:SPY over the last 50 days is relatively strong at 0.82 with a beta of 1.43X the broader market ( AMEX:SPY ).
NOT FINANCIAL ADVICE. ALL STOCKS CAN GO TO ZERO.
