The Semiconductor HLDRs ETF (SMH) continues to get clobbered. Yesterday Texas Instruments (TXN) was the culprit. Today, components Intel (INTC), Applied Materials (AMAT), and Analog Devices (ADI) all are under pressure.

The daily chart structure has a look of a very ominous, multi-month top formation that now is in the breakdown phase. The SMH projects optimally to the 33.40/00 target zone in the upcoming days/weeks, and possibly into the 31.00 area thereafter to fulfill its downside projections.



Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com, a real-time diary of his technical chart analysis and trading alerts on all major markets. For more of Mike Paulenoff, sign up for a free 15-Day trial to his MPTrader Diary by clicking here.