Chart of the Day – Wednesday, July 31, 2024

Largest single-day gain for Semiconductors in over 14 months (if it holds ’til session end) $SMH +7.56% pic.twitter.com/ih1pDy5ysD

— Grayson Roze (@GraysonRoze) July 31, 2024

Today’s Chart of the Day was shared by Grayson Roze (@GraysonRoze).

• The Semiconductor ETF ($SMH) closed higher by +7.63% today, marking the best day since $NVDA’s famous earnings report in May 2023, which effectively kicked off the “A.I. Rally.”

• Semis are still the best-performing industry group this year. $SMH is up +41.2% YTD despite pulling back as much as -18% over the past three weeks.

• $SMH reclaimed the March highs today, around $235, and the trend remains unequivocally higher. After a healthy correction, today’s thrust may have reignited the uptrend.

The Takeaway: Semis ($SMH) had their best day since $NVDA broke out in May 2023. Today’s thrust could mark the end of a healthy and well-deserved correction for this leading industry group.