SMH closed near its highs after a brief selloff, ending a string of bear flags and marking a change of character that points to higher prices at least near term; reclaiming the 50% parallel area where it closed could carry it back to the top of the parallel at 597/69.

semis trailing a little bit down 1%

Next up, uh the SMH. You can see here very nice decline down 1% today. Now, what did we talk about yesterday, guys? You remember I was using the fib retracement sequence to find different levels of support.

And we closed underneath the 618 yesterday. I said as long as we don't gap under the 786, we've got both the 786 and the 50% area of this parallel that will act as support. But guys, look exactly what happened.

We opened up uh we opened up way way beneath, excuse me, way beneath that 50% area, sold off. But the selling pressure literally only lasted for about 30 minutes. You can see here we dipped, got a little bounce, then sold off, and then it was up up and away from there.

That sort of close completely changes the whole uh patterns and formations on this way down. If you look, you see we we basically closed the day back here in October 6th. Gapped lower, chopped sideways.

That's a bare flag. The very next day, gapped lower, traded sideways, then went down further. Bare flag. Gapped up, bare flag. Downward move, bare flag. We were just amongst a whole bunch of bare flags.

Now we have a change of character. This is not a bare flag for intraday price action. instead finishing up near the top and also butdding up against that 50% area of the parallel.

It's telling me we're already knocking on the door to go higher at least near term. Where is price action likely to go if we do get traction in this range for a potential bounce?

Well, it's going to be right here at the top of the 50% area or pardon me, right at the top of this parallel channel, 597. You can tell today was an awesome day as we did kill the live day trading room, guys. at $24,000 in profit today alone.

But guys, what a fantastic day. Looking forward to tomorrow. Hopefully this volatility returns. As I said, be watching for the SMH in the near term. If it does get back above this 50% area, the parallel where it closed today, we could be marching right back up to the top of the parallel here at 597 and 69.