Verified Investing on $SMH (Oct 27, 2026)

I am primarily referring to the Semiconductor Index "SMH", which we will cover after Nasdaq. There you will get the indicator to see if this market is going to bounce back, or if this market is going to go selling, and I will continue to guide you in that direction after we take a look at the Nasdaq.

Next, guys, the optimism scale is in the SMH box. Now, folks, we've seen a sharp decline in SMH. To the point that you can see here that we were in the peak selling zone. We were bouncing right above the 30 threshold on the Relative Strength Index at the bottom of the screen.

In addition, we were entering a support zone that was likely to lead to a rebound. This area is the bottom of this long-term parallel line that started from the lows of Liberation Day in April 2025.

This area should provide an outlet for selling with a sharp downward move and then add another layer of support, which is the descending trend line that I have indicated here at the top of the screen.

This downtrend line was the point where SMH finally broke through. What do we cover very frequently in this program? We cover breakout trades, then pullbacks, then bounces. Now, we haven't dropped to the bottom of this trend line, but you can see how it works on the charts.

Sometimes the trend line is not touched before a bounce occurs. Many cases are related to previous price movement. But in this case, it was also related to the previous price movement.

This situation is precisely where I mentioned in April 2025. That is why we are witnessing this rebound. The short-term upside resistance will be at the 50% of the parallel range if we continue to rise tomorrow or in the coming days.

But at the moment, we have an upward movement of three candles on the SMH indicator. It's fantastic to break this trend. I wouldn't be surprised if we saw some kind of pullback over the next couple of days before we try to attack the 50% area of the parallel channel.