Symmetrical Triangle / Technical Analysis. SMH is a consolidation before a fall to the 31.70-32.10 area or the formation of a base that would push the ETF to the 35 area at the least. The recent action has also formed a small symmetrical triangle.

Little has changed in the stock market since our last commentary. We have little bias as to the short-term direction of the market, but whether the direction will be higher or lower we should know within the next couple of days.

Last Thursday, QQQQ hit our resistance point. Since then the ETF has fallen into support at the horizontal area of 42 and is at the bottom of our trend channel. With QQQQ hitting major resistance at 43 and our current signal of sell, we believe it is more likely for QQQQ to break the uptrend line and push to our next support area of 41, rather than break the 43 area to the upside.

It is hard to know whether the recent sideways movement in SMH is a consolidation before a fall to the 31.70-32.10 area or the formation of a base that would push the ETF to the 35 area at the least. The recent action has also formed a small symmetrical triangle. SMH needs to break the recent support at 33.40 to push to the lower support lines. A break above last Thursday's high should push the ETF to at least the 200 day moving average, more likely to the 35 area.

IWM is sitting right below all-time resistance. A break of 75 should push it to the lower support lines.

With QQQQ and IWM at such powerful resistance it is possible that the next short-term move will be lower. The recent sideways action has only prepared the next move and has given little clue as to what direction it will be in.