$$ Weekly Tech Report

Jan 11-15, 2010
For the annotated chart of $SMH please go here.

SMH

Price closed at $28.52, up 60 cents on the week, just 30 cents shy of the outer Keltner Channel (50,4,25) and well above the main trend line on price (currently ~$26 and rising).

Momentum: Last week's short term bearish divergence turned into this week's short term positive reversal, as RSI made a lower low compared to last week's RSI low, while price made a higher low compared to last week's price low. Overall, the up trend remains strong having obeyed the RSI up trend range rules for the last 9 months.

Volume: Short and medium term averages show accumulation, while long term average is flattening out.

Volatility: ADX has risen from 15 to 27 over the last month, while Std Deviation hugs its 125 day moving average. Volatility is average. No squeeze play is on.

Last Week's Outlook: The up trend looks strong. Waiting for a pull back.

Next Week's Outlook: Still waiting for a pull back. I would not be surprised to see SMH exceed the outer Keltner Channel before correcting back towards the neutral zone.