Chart of the Day - Wednesday, July 31, 2024

🏆 Today’s Chart of the Day was shared by Grayson Roze (@GraysonRoze).

• The Semiconductor ETF ($SMH) closed higher by +7.63% today, marking the best day since $NVDA’s famous earnings report in May 2023, which effectively kicked off the “A.I. Rally.”

• Semis are still the best-performing industry group this year. $SMH is up +41.2% YTD despite pulling back as much as -18% over the past three weeks.

• $SMH reclaimed the March highs today, around $235, and the trend remains unequivocally higher. After a healthy correction, today’s thrust may have reignited the uptrend.

The Takeaway: Semis ($SMH) had their best day since $NVDA broke out in May 2023. Today’s thrust could mark the end of a healthy and well-deserved correction for this leading industry group.