$SMH Could Be Ready to Explode Higher
The semiconductor ETF is showing one of the cleanest Elliott Wave setups I've seen in a while.
Here's what I'm watching:
📈 The Elliott Wave structure
$VanEck Semiconductor ETF(SMH)$ has formed a bullish 5-wave advance followed by a 3-wave pullback — one of the most recognizable patterns in Elliott Wave analysis.
More importantly, this structure is developing after a higher-degree WXY correction.
If the correction is complete, SMH could be setting up for a new Wave 3 advance — typically the strongest and most powerful wave in the sequence.
That could put the broader semiconductor sector back in rally mode, with $MU, $AMD and $NVDA potentially leading the move.
🎯 The levels that matter
The ABC correction is not confirmed yet, so there's still a possibility that SMH moves lower before the next leg higher.
My ABC Model currently confirms the bullish setup on a close above 50% of Wave C, at 491.53.
The hard invalidation level is the 440 low.
Once the model confirms, it will project upside targets even if SMH makes another low first.
⚠️ Don't chase the move prematurely
The bullish structure is developing, but confirmation hasn't happened yet.
That's why I'm waiting for the ABC Model signal rather than trying to predict the exact bottom.
The opportunity is to catch the next move after confirmation — not to chase a rally once it's already underway.
Keep $SMH at the top of your watchlist next week. 👀
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