Chart of the Day - Friday, November 17, 2023

Today’s Chart of the Day was shared by Shane Murphy (@MurphyCharts). While the major indices inch closer to all-time highs, some of the most important areas of the market are already there. Shane points out that Semiconductors ($SMH) closed at record highs on a daily and weekly basis today. $SMH initially broke out of an 18-month base in July, but the breakout quickly failed, and it went on to correct -14% to its 200-day moving average over the next three months. The recent correction and recovery formed the handle of a potential Cup and Handle pattern. Semiconductors tend to lead the broader market higher or lower. Remember, you can't have a party without the chips!