2007-2-27 2006-11-1 The first chart below shows both SMH (the lower part) and SMH divided by DIA. You can notice that even though SMH has broken above its August high, our indicator (SMH:DIA) has not. This tells us that SMH is beginning to underperform in its relationship to DIA and it is quite possible that the ETF has topped at the 35.10 level, its current resistance.The next chart is of QQQQ. You can see how the ETF has broken above our 40 resistance and is sitting right below our 40.60 resistance area. It is not necessary for QQQQ to hit the 40.60 resistance before retreating. In fact, a move to 40.60 would most likely push QQQQ to the next highest resistance level. The market has decided that the 40.40 resistance area was strong enough to push the ETF lower, and it is quite possible that the downtrend started at the open on Friday. 77506 text/html http://www.nasdaqwizard.com/MidPics/mid091806.html 1.0 EN index,follow The first chart below shows both SMH (the lower part) and SMH divided by DIA. text