Positive divergence wants to bounce the semi's in the near term here, but the descending triangle and overall longer term downtrend should come back into play over time. 385-ish support is very important now.
Semi's have been beated down along with financials. Note the purple positive divergence we watched that created the launch a couple weeks ago. Now we are back down again with positive divergence remaining in affect so price should bounce again from the teal circle. Of interest is a potential descending triangle forming as price has explored this 385-ish support area three times over the last six weeks. The base of the triangle is about 45 points, thus, should the 385 level fail, the triangle would target 380. The positive divergence will help the semi's regain some buoyancy in this near term, price would explore the top rail of the triangle and 50 MA resistance at 402-405, but then the negativity would resume.
Failure at 385 support is a major problem but perhaps a month of sideways action inside the descending triangle will occur first.
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