By Nicholas Santiago on June 24th, 2010 3:25pm Eastern Time
The semiconductor sector is one of the leading groups in the NASDAQ composite. This sector topped out with everything else in the market on April 26th, 2010. The Semiconductor Holders Trust (NYSE:SMH) is a basket of the leading semiconductor stocks and is a good barometer for the sector. The SMH daily chart will have some support around the $26.75 area. Today the SMH is trading lower by 0.51 to $27.37. Therefore, the SMH could pullback further before finding good support.
Intel Corp (NASDAQ:INTC) is one of the leading semiconductor stocks in the market. This stock topped out on April 15th, 2010 ahead of the rest of the market. That is why it is a leading stock. INTC will have daily chart support around the $20.00 level. Should that level fail to hold for the tech giant the next daily chart support level will be around the $19.00 level.
Texas instruments Inc (NYSE:TXN) is another leading semiconductor stock that has sold off sharply since late April. This stock has daily chart support around $24.00 and more at $22.75. Therefore, should the market remain weak this stock could see further downside.
During down markets it is always important to look at the leading stocks in a sector for signs of a possible market bounce. Right now the important semiconductor sector remains under pressure. However, attractive levels for a bounce are coming into play soon. Therefore, remain patient and watch for these levels to be tested. Once they are tested look to see how these leaders react and the rest of the group or sector will usually follow.
Comments