Weakness in the Philadelphia Semiconductor Index (SOX) could have importance for Tech.
It is always important to keep a close eye on leading sectors like the Semiconductors when they start to wane. Needless to say, the bulls are hoping for strong follow-on buying.
The Philly Semiconductor Index (SOX) broke down to sever its multi-month trend before attempting to rebound in recent days. The index lost nearly 2 percent on Wednesday as KLAC, AMAT, TXN, SWKS, MU all fell more than 3%.
After hours, stocks like QCOM were down nearly $10 points or more than 5% and could have further damaging effects to this group.
Thus, the Hardware and/or Software industry groups look relatively more attractive than Semiconductors and any drop under January lows at 2862 would be a big warning for a continued rotation out of the Semiconductor stocks.
Philadelphia Semiconductor Index (SOX) Chart
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Author has positions in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.