Chart of the Day - Monday, April 29, 2024

🏆 Today’s Chart of the Day was shared by Justin Spittler (@JSpitTrades).

• Semiconductors led last week, with $SMH having its best week in nearly a year (+9.3%). However, $SMH tumbled -9.7% the week before, marking its worst in two years.

• Justin points out that $SMH is testing its 50-day moving average from below while two prominent Semiconductor stocks, $AMD and $SMCI, report earnings tomorrow evening.

• $AMD represents less than 4% of $SMH, while $SMCI isn't even in the ETF. However, both companies will likely set the tone for the entire group.

The takeaway: The Semiconductor ETF ($SMH) has returned to the scene of the crime ahead of tomorrow's data dump. If $SMH resolves higher, the broader market will likely follow.