SMH expected to decline for two weeks then stabilize and rise in Q4.

Okay, what I'm going to do now is switch to the SMH index. So, what did you say about SMH? We received a request for SMH analysis earlier in the program, and I said I would present it here.

Interestingly, I do n't usually conduct an analysis of SMH; Katie or the RV team do, and you can see that they were expecting this market to move downwards in this timeframe. There was a previous low here that corresponds to the low I'm going to show you in the Nasdaq index, and you can see here that the indicators are pointing downwards, which means it may go down again.

When I look at the daily chart here, I find that one of the problems I have had with the stock market is that it has already broken this low level and then we have seen this big bounce.

The probability is very high that it will continue to move downwards for another two weeks before stabilizing at this low level.

Therefore, this may cause it to drop, perhaps to test this low level. These two weeks are really important because they align with what I showed you regarding the HYG indicator.

So, what we are looking at here is the SMH index. But once this low level is over here, we'll be entering the fourth quarter , and we're likely to see some upward movement here.

And why do I think it might experience a significant upward movement ? Well, this is a strong pattern formation, and it suggests there is a good chance of testing this level.

So, when I look at SMH again, some evidence points to a decline for about two weeks, but it is likely to move upwards again after that.

When I look at the SMH index, it suggests to me the possibility of another significant downturn.