SMH faces near-term resistance at 607.58; requires 4-7 days of accumulation or further decline to channel top for rebound.

Into the SMH, guys, SMH, as we see, did pull back slightly yesterday. And if you recall from watching trading the close, I've been illustrating this daily, guys. really monitoring what's going on with the SMH because I see the SMH as being the leading indicator for risk on sentiment in the markets. And what we've analyzed and discussed this declining trend line that you see on the chart is from the all-time highs. We most recently have broken out and extended away from that trend line. A great breakout. In doing so, we broke out of this longerterm inclining parallel channel. This parallel channel contained price since the liberation day lows back in April of 2025. So getting out and back above that again near-term bullish double breakout on our hands. Price just has simply gotten jammed up right here at the 618 fib retrace from this decline which is at 607 and 58. Getting through that would be very bullish near term. So I see any close daily above 60758 that does increase probabilities for SMH to go up and attack the next key resistance level at 635 and84. So be watching the daily close today. If we close above that key level of resistance 60758.

Now we move on to the SMH index . SMH's performance wasn't bad either . The situation did not look good at first , just as it did with the S&P 500 when we saw a downward gap, then entered a downward accumulation phase, and then came that news which completely turned the tables on the market's momentum and expectations for the whole day. As you can see, we closed the trade close to closing the gap at the end point. We are seeing a slight decline after trading hours. Now, the resistance level, as you can see here, at the top, is the 618 Fibonacci retracement level from its all- time high to its most recent low . This level, as I mentioned, is located at 607.58. This level is likely to remain a resistance level in the near term, even if we rise further tomorrow. It will likely take at least 4 to 7 days of accumulation before we start to rise. However, the bottom line regarding the SMH index today is that it has declined, but not enough to reach the top of this parallel channel, as we saw here in the IXIC index breakout correction bounce. The index has not yet fully declined, at least to the top of this parallel channel, in order for a rebound on the SMH index to follow.