SMH Has Been Pressuring The Nasdaq

If you are looking for the source of weakness in the nasdaq, you need to look no further than the Semiconductors ( SMH ). After breaking out of it range (above $35) the SMH recently failed and broke back down through that level. It appears to want to test the bottom end of that range around $30. If that takes place it will continue to weigh on the nasdaq for the time being. A move back above $35 would allow the nasdaq to regain it's footing.

Here is the chart, for now it's rather ugly: