Semiconductors Set The Tone For Tech
This morning, the Semiconductor Holders Trust (NYSE:SMH) is coming under some selling pressure as the SMH is trading lower by 0.54 cents to $31.39 a share. When the semiconductor stocks decline it is usually a sign that most technology stocks will be weak. Often the semiconductor sector will lead the NASDAQ Composite on the daily and intra-day charts. Many traders and investors believe that the NASDAQ cannot trade higher without a strong semiconductor sector. Short term traders can watch for intra-day support around the $31.25 and $30.60 levels.
Some leading semiconductor stocks that are trading lower this morning include Sandisk Corp (NASDAQ:SNDK), Skyworks Solutions Inc (NASDAQ:SWKS), and Broadcom Corp (NASDAQ:BRCM). Traders can watch for intra-day bounces in these stocks when the SMH reaches important support levels. This semiconductor sector often trades together like birds of the same feather.