SMH is fine for a trading instrument, but your signals should be derived from the SOXX Index...
For today:
SOXX - SHARP PULLBACK ON STRONG, BUT LIGHTER VOLUME - Big Damage as SOXX closed down 37 points at 1366, just a point from the low of the day... now the SOXX failed to test the 1362 pivot today, that's still out there to be tested, should we see a negative reaction to the news tomorrow... overall though this is probably ready to bounce... SOXX closed at 1366 - we see resistance at 1369, 1372, 1375, 1378, 1381, 1384, 1386, 1390 and support at 1366, 1364, 1361, 1359, 1357, 1354, 1352, 1348, 1345, 1342
SOX tested the 1362 and bounced sharply... I cover this every day, anyone who wants to trade semiconductors should get my daily forecasts...