If you like fractals, you will love this. Ratio of SMH to SPY shows a possibility of repeating an earlier fractal where there is a big drop in the SMH compared to SPY (SMH/SPY ratio).
As with any ratio, one needs to gauge the action of the numerator as well as the denominator.
So, either SMH declines faster than SPY, or SPY increases faster than SMH (optimistic).
Looking at a standalone SMH chart, I say SMH is due for a big correction.
As with any ratio, one needs to gauge the action of the numerator as well as the denominator.
So, either SMH declines faster than SPY, or SPY increases faster than SMH (optimistic).
Looking at a standalone SMH chart, I say SMH is due for a big correction.