Semiconductors have fired a warning shot.
As the S&P 500 hovers near its all-time high, the semiconductor sector is taking a nosedive.
The Philadelphia Semiconductor Index (the "SOX") fell nearly 4%
last week. Individual semiconductor stocks fared even worse. Qualcomm
(QCOM) declined 6%. Applied Materials (AMAT) fell 8%. And Maxim
Integrated Products (MXIM) plunged 13%.
Semiconductors tend to lead the market. So this could be the first sign of trouble...
Take a look at this chart of the SOX...
Last week, the SOX broke below its 50-day moving average (DMA).
Most technical analysts view the 50-DMA as the "line in the sand"
separating intermediate-term uptrends from intermediate-term downtrends.
So when an asset is trading above the 50-DMA, it's bullish. When it's
trading below the 50-DMA, it's bearish. (more)
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