How Much Juice Is Left In The Semiconductors?
The semiconductor sector has been very strong along with the major stock indexes since October 4, 2011. At that time, the major stock indexes staged a massive reversal day into the closing bell, kicking off this massive nine day rally. The Semiconductor Holders Trust (NYSE:SMH) has surged higher by more than $4.50 from its October low pivot of $25.92 a share. This morning, the SMH is trading higher by 0.22 cents to $30.54 a share. Traders should watch for intra-day resistance around the $30.80 area. The daily chart resistance will be around the $31.00 level.
Some leading semiconductor stocks that are trading higher this morning include Sandisk Corp (NASDAQ:SNDK), Broadcom Corp (NASDAQ:BRCM), Skyworks Solutions Inc (NASDAQ:SWKS), and Qualcomm Inc (NASDAQ:QCOM). All of these leading stocks are now getting very extended on the daily charts. These stocks are likely to see pullbacks soon.