SMH index recovered to find support at the 618 Fibonacci retracement level; previous resistance turned into support. The index is in a warning zone consolidating within this range, having not collapsed.

Next, we move on to the SMH index. The SMH index recovered well today from its lowest levels. Now, this previous resistance has turned into a support level. And that worked very well today. It broke through easily, but look at the amazing recovery to close again near that resistance line. So, so far, the SMH index has not necessarily collapsed. In fact, the other charts did not collapse either. It is simply in a warning zone, so to speak, because the conflict zone that we just broke through and found support on was the 618 Fibonacci retracement level from this peak to the trough on the chart. This is the 786 level, so you can see that we have been advancing towards the next level, and the price is doing its best to start consolidating within this range.