Video Chart Analysis on SMH, INTC, TSM, QCOM and NVDA

Our Stock Waves Charts of the Day video looks at the semiconductor sector, starting with the VanEck Vectors Semiconductor ETF (SMH).

The SMH has seen a very nice impulsive move off the 2009 low in progress with the recent high that was just hit last month at the 161.8% extension based on the size of our primary degree wave 1 and projected from the bottom of our primary wave 2.  

That 1.618 extension is a very common target for a 3rd wave with an impulse, and counts very well off the 2015 low as 5 waves up -- in other words, as the intermediate-degree 5th wave within that primary wave 3. 

So there's a lot of evidence here suggesting that price has completed this primary wave 3 and is now going to begin the primary 4 wave correction back into this 123.6% to 100.0% extension target, which is between $82 and roughly $65 before starting the primary 5th wave to new highs.

Also in our video we look at holdings in the SMH, including Intel (INTC), Taiwan Semiconductor Manufacturing Company Limited (TSM), QUALCOMM Incorporated (QCOM) and NVIDIA Corporation (NVDA).

Garrett Patten is a senior analyst at ElliottWaveTrader covering both U.S. and international equity indices as well as stocks.