$SMH Shows Warning Signs as $MSFT and $LLY Hit Their Targets

The market's biggest winners continue to deliver, with software and healthcare names extending their breakouts.

However, after leading the rally for months, semiconductor stocks are beginning to show early signs of consolidation and deserve closer attention.

1. $VanEck Semiconductor ETF(SMH)$

Since semiconductors have driven most of the recent rally, printing a weekly indecisive candle with a gap below is a reason to be careful. The overbought RSI points to the same thing.

To fill the gap, SMH would have to fall -5%. $Invesco QQQ(QQQ)$ $SPDR S&P 500 ETF Trust(SPY)$

2. $Microsoft(MSFT)$

$MSFT was posted as a high probability setup last week, and the $441 target was surpassed for a 7.5% weekly move 🎯. Price action shows conviction and even after a consolidation given the Bollinger bands, the context suggests continuation.

Any software stock to chart?

3. $Eli Lilly(LLY)$

$LLY was a high-probability setup for this week, hitting my 1,129 target for a +6% gain before topping at 1,149 🎯.

Friday's pullback is normal following overbought conditions relative with the RSI and upper Bollinger band.

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