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TikTok beauty influencer shot dead during live stream in Mexico

2 Mins Read

Valeria Marquez was addressing her TikTok followers in a livestream from her beauty salon in Zapopan, Mexico, when someone arrived at her door to deliver a small parcel.

“He’s a little piglet!” the 23-year-old beauty influencer exclaimed as she returned to her viewers and unwrapped the stuffed animal, smiling as she tossed her long blonde hair over her shoulder.

Moments later she was dead, slumped over in her chair with blood pooling on the desk in front of her, even as the livestream continued. The footage ended only when another person picked up her phone, their face momentarily showing to viewers.

According to the state of Jalisco’s Attorney General’s office, Marquez was shot dead by a male intruder into her salon in a case it is investigating as a suspected femicide – the killing of a woman or girl for gender-based reasons.

The death of Marquez – a public figure with more than 100,000 Instagram followers – has sent shockwaves through a country that has long struggled with high levels of both homicide and violence against women.

Just days earlier, another woman – a mayoral candidate in the state of Veracruz – was also shot dead during a livestream, alongside three other people.

While not all homicides involving women are femicides, many are. In 2020, a quarter of female killings in Mexico were investigated as femicides, with cases reported in each one of Mexico’s 32 states, according to Amnesty International.

Last year, there were 847 reported cases of femicide nationwide – and 162 in the first three months of this year, according to Mexican government figures.

Mexico’s response to homicides in general is severely wanting, according to rights groups, who say too few investigations lead to prosecution.

The main challenge, Goebertus said, is increasing authorities’ capacity to investigate and protect witnesses and victims.

This post appeared first on cnn.com

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In World news

Inside the Bayesian’s final moments: extreme winds sank superyacht, interim report finds

4 Mins Read

Sudden, hurricane-force winds toppled the luxury Bayesian superyacht that sank off the coast of Sicily last August, according to an interim report into the disaster, which found the boat had “vulnerabilities” to extreme wind which were not known to the owner or crew.

The 184-foot sailing boat owned by British tech tycoon Mike Lynch was anchored about a half mile from the port of Porticello on the Italian island’s northern coast when it sank, killing seven people, including Lynch and his 18-year-old daughter Hannah.

The interim report by the UK’s Marine Accident Investigation Branch (MAIB) gives a detailed account of the hours before the Bayesian suddenly capsized and the desperate escape attempts by the 12 guests and 10 crew on board in the moments after.

On the evening of August 13 when Bayesian’s guests and some of its crew retired for the night, the seas were calm and the winds were light, but thunderstorms were forecast, the report said.

Bayesian’s skipper, James Cutfield, told the overnight watchkeepers to wake him if the wind speed increased above 23 mph or if the boat started dragging anchor, the report said.

At around 3 a.m., one of the watchkeepers noticed storm clouds and lightning seemed to be getting closer, though the wind was blowing at around 9 mph from the west.

An hour later, the wind picked up to 34 mph. Around 3:55 a.m., the watchkeeper filmed a video of the advancing storm and posted it to social media, according to the report, before closing the cockpit windows and forward hatches to protect the yacht’s interior from rain.

Eyewitnesses described furious gales and hurricane-like winds that left an avalanche of debris near the pier.

At 3:57 a.m., the yacht started dragging its anchor, and the watchkeeper woke the skipper and other crewmembers, the report said. Some of the guests were also woken by the storm. Lynch made his way to the boat’s flybridge to see if the taxis arranged for 8 a.m. that morning would have to be canceled because of the storm. The yacht’s chef began stowing cutlery, pots and pans.

Then, the wind suddenly increased to more than 80 mph, and at around 4:06 a.m. the yacht “violently heeled over” to a 90-degree angle in less than 15 seconds, sending people, furniture and other loose items flying across the deck, the report said.

“There was no indication of flooding inside Bayesian until water came in over the starboard rails and, within seconds, entered the internal spaces down the stairwells,” the report said.

Guests and crew scrambled to escape the sinking ship, with two guests using furniture drawers as a ladder to escape their cabin, according to the report.

The survivors treaded water and used cushions from the boat as flotation devices before the boat’s chief officer was able to detach and inflate a life raft, the report said.

Responding to a flare from the life raft, the skipper of a nearby ship rescued the survivors before calling the local coast guard, the report said.

Seven people died in the accident, including the yacht’s chef Recaldo Thomas, Morgan Stanley International director Jonathan Bloomer, prominent American lawyer Chris Morvillo, and both of their wives – Judy Bloomer and Neda Morvillo. Cutfield and 14 other people survived the sinking, including Lynch’s wife, Angela Bacares.

Winds of 73 mph were enough to knock the Bayesian beyond the point of no recovery, the investigation found. It also said it is possible Bayesian could have been vulnerable to lighter winds.

“These vulnerabilities (when in the motoring condition with sails lowered, the centreboard raised and 10% consumables on board) were not identified in the stability information book carried on board,” the report said. “Consequently, these vulnerabilities were also unknown to either the owner or the crew of Bayesian.”

Marine salvage experts are currently working to recover the yacht from the ocean to better understand what happened.

This post appeared first on cnn.com

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In World news

At least 31 suspected Maoist rebels killed in India’s ‘biggest ever operation’ against decades-old insurgency

3 Mins Read

Indian police have killed 31 suspected Maoist rebels in what is being described as the “biggest ever operation” against the long-running insurgency.

Security forces spent 21 days attempting to capture the rebels along the border of the states of Chhattisgarh and Telangana in central India, Home Minister Amit Shah said Wednesday.

Describing the operation as a “historic breakthrough,” Shah said security forces carried out the “biggest ever operation” against the rebels, killing 31 of them in Karreguttalu Hill, considered a Maoist stronghold.

Indian authorities have been battling Maoist rebel groups, also known as Naxals, across several central and northern states since 1967. Inspired by Chinese revolutionary leader Mao Zedong, insurgents have over the decades launched attacks on government forces in an attempt to overthrow the state and, they say, usher in a classless society.

“Our security forces completed this biggest anti-Naxal operation in just 21 days and I am extremely happy that there was not a single casualty in the security forces in this operation,” Shah wrote on X, congratulating the soldiers for their “bravery and courage.”

“So far, a total of 214 Naxal hideouts and bunkers have been destroyed in this operation,” a statement from the Ministry of Home Affairs said, adding that hundreds of explosives were recovered during the search.

The insurgents are known as Naxalites in India after Naxalbari, a village in West Bengal state where they originated in the late 1960s.

Prime Minister Narendra Modi hailed the operation in a post on X.

“This success of the security forces shows that our campaign towards rooting out Naxalism is moving in the right direction. We are fully committed to establishing peace in the Naxal-affected areas and connecting them with the mainstream of development,” Modi said.

The Indian government has cracked down in areas where Maoist groups are active – an approach that, while appearing to reduce the threat level, has been criticized by some observers as heavy-handed and prone to abuse.

Incidents of violence by rebel groups fell from 1,936 in 2010 to 374 in 2024, according to data from the home ministry. The total number of civilian and security-forces deaths have also fallen by 85% during this period, the data shows.

At least 31 suspected Maoist rebels and two police officials were killed in February, in what was described by police as the deadliest combat this year so far.

In 2021, 22 Indian security force members were killed and 31 injured in 2021 during a four-hour gun battle with insurgents, officials said.

This post appeared first on cnn.com

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More than 1,000 US kids were named ‘King’ last year. But in New Zealand, that name is banned

3 Mins Read

It seems some parents in New Zealand just can’t get the message. Once again, King has topped the list of baby names rejected by the country’s Registrar General.

The royal title led the list of banned baby names for 14 years in a row until 2023 when it was replaced by Prince, which ranks second in the latest iteration.

Other regal references including Duke, Majesty and Emperor are also a no-go in the country, which polices birth names under its strict registration law.

New Zealand registered 60,000 births last year and rejected 38 proposed names, according to a letter from John Crawford-Smith, Principal Advisor of the Department of Internal Affairs, in response to a written inquiry.

Under the law, baby names must not be offensive, unreasonably long, or include numbers and symbols. They must also refrain from resembling official titles and ranks “without adequate justification,” according to the Births, Deaths, Marriages, and Relationships Registration Act 2021.

New Zealand is part of the British Commonwealth and a constitutional monarchy that calls Charles III its King. It’s not known if the 11 parents who applied to call their child King meant it as an ode to Charles, but all were asked to have a rethink, according to Crawford-Smith.

In 2024, more than 1,000 children in the United States were called King, according to the Social Security Administration. (Liam and Olivia were the top US names last year).

Most of New Zealand’s rejected names had royal links. Ten applications for Prince were rejected, followed by four for Princess. Names like Kingi, Kingz, Prinz, Prynce, and Royallty were also banned – potentially because department staff also consider how names sound when spoken when deciding if they’ll be approved.

Officials also consider community perceptions of the proposed name. That may be why other names, including Sativa and Indica, both strains of cannabis, were rejected.

Fanny, once a popular first name, was also declined.

Parents are given an opportunity to explain their rationale before the Registrar General makes a final decision. “We continue to urge parents to think carefully about names,” Crawford-Smith wrote in the letter. “Names are a gift,” he added.

New Zealand is not the only country that imposes laws to regulate newborns’ names.

In 2015, a French judge in the northern part of the country refused to let two parents name their child Nutella because of the risk of humiliation.

Sweden also has a naming law and has nixed attempts to name children “Superman,” “Metallica,” and “Brfxxccxxmnpcccclllmmnprxvclmnckssqlbb11116.”

In the United States, some naming fights have centered on adults.

In 2008, a judge allowed an Illinois school bus driver to legally change his first name to “In God” and his last name to “We Trust.”

But the same year, an appeals court in New Mexico ruled against a man – named Variable – who wanted to change his name to “F— Censorship!”

This post appeared first on cnn.com

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In Business

American Eagle shares plunge 17% after it withdraws guidance, writes off $75 million in inventory

3 Mins Read

American Eagle on Tuesday said it is writing off $75 million in spring and summer merchandise and withdrawing its full-year guidance as it contends with slow sales, steep discounting and an uncertain economy.

The apparel retailer said it expects revenue in the first quarter, which ended in early May, to be around $1.1 billion, a decline of about 5% compared to the prior-year period. American Eagle anticipates comparable sales will drop 3%, led by an expected 4% decline at intimates brand Aerie. American Eagle previously expected first-quarter sales to be down by a mid-single-digit percentage and anticipated full-year sales would drop by a low single-digit percentage. 

Shares plunged more than 17% in extended trading. 

When it reported fiscal fourth-quarter results in March, American Eagle warned that the first quarter was off to a “slower than expected” start, due to weak demand and cold weather. Conditions evidently worsened as the quarter progressed, and the retailer turned to steep discounts to move inventory.

As a result, American Eagle is expecting to see an operating loss of around $85 million and an adjusted operating loss, which cuts out one-time charges related to its restructuring, of about $68 million for the quarter. That loss reflects “higher than planned” discounting and a $75 million inventory charge related to a write-down of spring and summer merchandise, the company said. 

“We are clearly disappointed with our execution in the first quarter. Merchandising strategies did not drive the results we anticipated, leading to higher promotions and excess inventory. As a result, we have taken an inventory write down on spring and summer goods,” said CEO Jay Schottenstein.

“We have entered the second quarter in a better position, with inventory more aligned to sales trends,” he said. “Additionally, we are actively evaluating our forward plans. Our teams continue to work with urgency to strengthen product performance, while improving our buying principles.” 

The company added it is withdrawing its fiscal 2025 guidance “due to macro uncertainty and as management reviews forward plans in the context of first quarter results.” It is unclear if recent tariff policy changes had an effect on American Eagle.

Some companies bought inventory earlier than usual to plan for higher duties, but American Eagle repeatedly said in March that it was in a solid inventory position and was able to go after trends as customer preferences shifted. 

At the start of the first quarter, the company said it had some inventory outages and needed to supplement stock in a few key categories, particularly at Aerie, one of its primary growth drivers. 

This post appeared first on NBC NEWS

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In Stocks

Unlock the Power of StockCharts’ NEW Market Summary Dashboard | Walkthrough & Tips

1 Min Read

In this in-depth walkthrough, Grayson introduces the brand-new Market Summary Dashboard, an all-in-one resource designed to help you analyze the market with ease, speed, and depth. Follow along as Grayson shows how to take advantage of panels, mini-charts, and quick scroll menus to maximize your StockCharts experience.

This video originally premiered on May 12, 2025. Click on the above image to watch on our dedicated Grayson Roze page on StockCharts TV.

You can view previously recorded videos from Grayson at this link.

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In Stocks

Market Maker Manipulation; Oops, They Did It Again!

4 Mins Read

Let’s be honest. Did anyone think a little more than a month ago that the S&P 500 was primed for a 1000-point rebound? I turned bullish at that April 7th bottom a month ago, but I did not see this type of massive recovery so quickly.

Why does this happen?

I believe these panicked selloffs occur, because the big Wall Street firms get out prior to market massacres and they need to get back in. What’s the best way to accumulate shares? To send out your best market influencers (oops, I meant analysts) to drive home the pain and misery that’s coming. I mean, just ask the media outlets. They were the ones responsible for all those terrorizing headlines. And market makers added panic by opening stocks much, much lower from previous days’ closes on many occasions this year.

Want some evidence?

Well, let’s go back in time and zero in on the more aggressive QQQ (ETF that tracks the NASDAQ 100):

At the very bottom, when the most manipulation takes place, we see massive gaps to the downside that create opportunities for Wall Street firms to buy in much, much cheaper as retail traders panic sell into those falling gaps. The massive volume that accompanies capitulation makes it very easy for market makers to buy lots of shares on their own behalf and on behalf of their institutional clients. This institutional buying is reflected by higher prices intraday. Looking at the above chart, the QQQ tumbled 52.46 (476.15-423.69) over 3 trading days. But the total gap downs over those 3 days were 46.26, nearly 90% of the entire 3-day meltdown. This wasn’t a distribution period or a selling event, it was a MARKET MAKER MANIPULATION EVENT.

Want an even more telling stat? From the March 13th close (467.64) to the Friday, May 9th close (487.97), the QQQ gained roughly 20 bucks. Here’s the breakdown of how the QQQ traded on an intraday basis over this 2-month period:

  • Opening gaps: -42.31
  • 9:30-10:00: +19.18
  • 10:00-11:00: +6.72
  • 11:00-2:00: +21.86
  • 2:00-4:00: +14.13

During a period when the QQQ gained roughly 20 bucks, the cumulative opening gaps were -42 bucks. That means that the QQQ saw buying to the tune of 62 bucks during the trading day. Panicked retailers took the market makers’ bait and sold with all the media-related nonsense, while market makers were secretly buying for all their Wall Street colleagues and buddies.

If you’re sitting in cash right now, wondering when to get back in, I can promise you that you’re not alone. This 2025 “massacre” and “shocking rebound” were planned all along. Wall Street’s rotation into defensive areas of the market had me and many EarningsBeats.com members in cash back in January and early February. They absolutely knew this was coming, but media outlets weren’t telling us back then to get out. They waited for the fear to kick in before posting their ridiculously-bearish headlines over and over and over again – forcing retail traders to say “Uncle!!!!!”

This is what I refer to as “legalized thievery.” It’s how our financial system works unfortunately. You either learn how to play defense against it or periodically suffer the consequences. At EarningsBeats.com, we choose the former.

How To Build A Winning Portfolio

Now that the manipulation is in our rear view mirror and the S&P 500 looks to move back into all-time high territory, it’s very important to understand the best way to outperform the benchmark S&P 500. That’s what we strive to do over time and we’ve been very successful at it. This Saturday, May 17th, at 10:00am ET, I’ll be hosting a webinar to show you how to successfully build a portfolio that outperforms over time. One part of this webinar will be dedicated to highlighting the keys to spotting the 2025 cyclical bear market and determining the best time frame to jump back in. We’ve made these calls in real time during 2025, from our MarketVision 2025 event in early January to my Daily Market Reports to EB members to my StockCharts blog articles to my YouTube shows hosted by both EarningsBeats.com and StockCharts.com. It’s extremely important that we learn from difficult periods in the stock market so that we’re better prepared for the next one.

Don’t allow Wall Street to manipulate you. I’m going to show you the best way(s) to avoid it when it occurs again. And it WILL happen again. CLICK HERE to learn more, register for our “How To Build A Winning Portfolio” and save your seat. If you cannot make the event live on Saturday, you’ll receive a recording of the event to listen to at your leisure simply by registering. So register NOW!

Happy trading!

Tom

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In Stocks

50% of S&P 500 Stocks Just Turned Bullish – What Happens Next?

1 Min Read

Bullish signal alert! Over 50% of S&P 500 stocks are now above their 200-day moving average.

In this video, Dave explains this key market breadth indicator and what it means for stock market trends. He shows how moving average breadth has reached a bullish milestone, what this means based on historical signals over the past 15 years, and how it compares to the Zweig Breadth Thrust. He also introduces the stoplight market phase technique—a simple but effective method using StockCharts tools to assess market conditions in real time.

This video originally premiered on May 13, 2025. Watch on StockCharts’ dedicated David Keller page!

Previously recorded videos from Dave are available at this link.

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In Stocks

Bullish Breadth Improvement Suggests Further Upside For Stocks

4 Mins Read

We’ve been cautious about the uptrend phase off the April low for a number of reasons, including the lack of breadth support.  While short-term measures of breadth had turned more positive, the long-term breadth conditions had remained firmly in the bearish realm.  With the renewed strength in risk assets over the last week, our long-term breadth measures now indicate a healthy uptrend phase.  

Today we’ll dive a little deeper into one of those breadth indicators, talk about why we track moving average breadth, and show how this recent bullish signal could be a sign of stronger price action to come.

Here we’re showing the S&P 500 on a closing basis along with its 50-day and 200-day moving averages.  Below that, we’re tracking the percent of S&P 500 stocks above their 200-day moving average, followed by the percent of stocks above their 50-day moving average.

Starting at the bottom, we can see that less than 10% of S&P 500 members were above their 50-day moving average at the April 2025 low.  The last time we had reached below the 10% level was back in October 2023, just before a significant market bottom.

While the surge in this short-term breadth indicator over the last month has suggested a tactical rally, the panel above shows how there were still less than 50% of S&P 500 members above their 200-day moving average.  So most stocks had regained the short-term moving average, but were still languishing below the long-term moving average.

As risk assets have surged higher this week, it’s meant enough upside momentum that now most S&P 500 members are back above their 200-day moving average.  Now let’s look at a longer-term time frame and consider previous instances where this long-term moving average breadth indicator has gone from below 25% to above 50%.

We’ve identified eight occurrences of this pattern since the 2009 market low.  In all eight occurrences, the S&P 500 has experienced positive returns in the next 12 months.  And with the exception of the signal in October 2015, we haven’t seen any retest of the previous swing low.

Let’s dig into that 2015 example a little further, and you’ll see what differentiated that particular signal from all the others.

In all the other occurrences, the S&P 500 broke above its 200-day moving average and held that crucial level of support.  In Q4 2015, however, the S&P 500 failed to hold the 200-day moving average, and the breadth indicators soon rotated back to a bearish phase.

It took another attempt in March 2016 before the chart finally resolved to the upside, with the S&P 500 leaving the 200-day moving average behind as it continued to push higher.  Breadth indicators continued to improve as investors began to believe in the bull market of 2016.

I was taught that “nothing good happens below the 200-day moving average,” which also implies that good things can definitely happen above this long-term trend barometer.  At this point, given the bullish breadth rotation that we’ve observed off the April low, I would say that as long as the S&P 500 remains above its 200-day moving average, then we stand a serious chance of further upside from here.

If, however, the SPX fails to hold this crucial line of support, and the index falls back below the 5750 level, then we may be looking at more of a 2015-style retracement as fears rise and stocks drop.

RR#6,

Dave

PS- Ready to upgrade your investment process?  Check out my free behavioral investing course!

David Keller, CMT

President and Chief Strategist

Sierra Alpha Research LLC

marketmisbehavior.com

https://www.youtube.com/c/MarketMisbehavior

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice.  The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.  

The author does not have a position in mentioned securities at the time of publication.    Any opinions expressed herein are solely those of the author and do not in any way represent the views or opinions of any other person or entity.

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In Stocks

Tariff Tensions Ease, Nasdaq Soars — But is SMH the Emerging Leader?

6 Mins Read

For months, investors have been on edge over U.S.-China tariff tensions, bracing for everything from fears of empty shelves to rising prices. But after this weekend’s trade talks, where both sides agreed to temporary tariff cuts (emphasis on temporary), stocks surged.

On Monday, the Dow Jones Industrial Average ($INDU) jumped 1,160 points, while the S&P 500 ($SPX) and Nasdaq Composite ($COMPQ) rallied 3.26% and 4.35%, respectively.

Monday’s rally sparked hopes that the worst may be over. Yet analysts remain split: some see signs of a bottom, while others warn this 90-day pause is just the start of a long, messy negotiation.

So here’s the critical question: If this is the bottom, which sector (or industry) leads the rebound, and is it worth investing in it right now? For investors, the answer could be the difference between riding the next bull wave or watching it pass by.

Nasdaq-100 Shows Strength, but Which Sector Leads?

Checking StockCharts’ Market Summary midday on Monday, the Breadth panel showed that the tech-heavy Nasdaq 100 ($NDX) had the most percentage of stocks (62%) trading above their 200-day simple moving average (SMA), indicating early strength and recovery (displayed in the Moving Averages tab).

FIGURE 1. MARKET SUMMARY – INDICES TRADING ABOVE 20 TO 200-DAY MOVING AVERAGES. The Nasdaq 100 is the most bullish index above the 200-day, warranting a closer examination.

About 51% of the Nasdaq 100 is made up of Information Technology stocks, while Consumer Discretionary and Communication Services together account for roughly 31% of the index.

Information Technology Dominates the Index

To get a clearer sense of market breadth, it’s useful to examine the sector-level Bullish Percent Index (BPI), which shows the percentage of stocks within each sector exhibiting technical strength.

FIGURE 2. MARKET SUMMARY SECTOR BULLISH PERCENT INDEX. While many sectors have bullish BPIs, the tech sector is leading.

While Communications and Discretionary are exhibiting technical strength, the Information Technology sector is leading the pack, with over 91% of stocks triggering Point & Figure buy signals.

Semiconductors: The Bellwether to Watch

While tech is also comprised of various industries, only one—semiconductors—is widely regarded as a “bellwether” industry. Shifting over to the US Industries panel, semiconductors displayed the highest StockCharts Technical Rank (SCTR).

FIGURE 3. BELLWETHER INDUSTRY SCTR SCORES. Among the bellwether industries listed, chipmakers are outpacing everything else.

While my threshold for bullish SCTR reading is 76, the semiconductor industry is the only bellwether industry that clears that bar.

But what might the performance of the Nasdaq 100, semiconductor, and broader market performance look like side by side? To answer this question, I plotted all three on a one-year PerfCharts view.

 FIGURE 4. PERFCHARTS OF SEMICONDUCTORS, NASDAQ 100, AND THE S&P 500. Here, semiconductors aren’t looking so hot, being the laggard of the bunch.

Using VanEck Vectors Semiconductor ETF (SMH) as the industry proxy, you can see that SMH was leading the Nasdaq 100 and S&P 500 last summer, but began lagging the two indexes starting in November. SMH was the hardest hit in the aftermath of the Trump tariffs, and, while it’s recovering, its performance is still trailing both indices.

This raises two key questions: First, is SMH’s upswing a true recovery or a temporary bounce? And second, is it worth investing in SMH in this stage of the cycle (in other words, does it present an opportunity to catch an uptrend early on)?

Weekly Chart Signals: Bear Market Drop or Recovery?

Let’s take a closer look at SMH, starting with a weekly chart.

FIGURE 5. WEEKLY CHART OF SMH. From a primary trend perspective, one that can last years, the uptrend is arguably intact, though facing challenges.

Here are the key points to look at:

  • SMH is trading above the 40-week SMA (equivalent to a 200-day SMA) following a sharp price gap up. But can it hold above that level?
  • SMH plunged 39.8% from its 2024 high of around $280 to the 2025 low of $170. This is a textbook bear market drop that raises the question: Is this latest surge just a bear market rally?
  • On the other hand, a long-term Fibonacci Retracement measured from the 2022 low to the 2024 high found support at the 50% and 61.8% retracement levels. This kind of pullback is not only “normal”, but also supports the view that SMH’s bullish “primary trend” is still intact.
  • However, the Chaikin Money Flow (CMF) is signaling weak buying pressure. For the rally to continue, there needs to be stronger accumulation, something the CMF has yet to confirm.

Daily Chart View: Support, Resistance, and Warning Signs

After looking at SMH from a broader scale, what might the price action reveal if we were to zoom in using a daily chart?

FIGURE 6. DAILY CHART OF SMH. Zooming in, SMH’s situation looks even less bullish.

This chart tells a tougher story: SMH looks ready to re-enter the months-long trading range it broke to the downside in March.

Should You Invest In SMH? Here’s What to Watch

To answer this question, here’s some points you might want to focus on:

For one, note how closely the stochastic oscillator cycles mirror SMH’s fluctuations. With a reading above 96, SMH may be due for a near-term pullback.

Should it pull back, SMH will need to remain above or bounce at the $210 support range (highlighted in blue) for the current, albeit small, uptrend to remain intact. Below that, it might bounce at the consecutive swing lows—$185 and $170—but such a deep pullback indicates weakness and raises the possibility that SMH may slip back into the trading range (highlighted in yellow) that dominated a lengthy five-month period.

On the upside, SMH needs to eventually clear that same range before challenging its all-time highs at the $281 level. If SMH manages to do so, it’s likely to unfold in a series of higher highs and higher lows, which will take some time to develop.

At the Close: A Bullish Setup or Bull Trap?

While SMH has begun to exhibit significant technical strength, warning signs remain. If you’re bullish on semiconductors, the next few weeks will be critical. Holding the $210 support zone is key for keeping the uptrend intact. A drop toward $185 or $170 would raise serious doubts about the sustainability of the current rally.

If SMH can clear its trading range and build a structure of higher highs and higher lows, it could be poised to challenge its all-time highs once again. Until then, stay cautious and keep a close eye on the technical levels discussed above.

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your personal and financial situation, or without consulting a financial professional.

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