Semiconductor ETF Nears Major Resistance
Nicholas Santiago | Feb 11, 2013 04:37PM ET
The Market Vectors Semiconductor ETF (SMH) at $35.33 a share, a new high for the SMH, which represents the leading semiconductor stocks in the sector. Traders should watch that area for near-term resistance on the daily chart.
Index Leader
The semiconductor sector usually leads the NASDAQ Composite. Should the SMH trade higher from here, it would be a good indication that the NASDAQ Composite is likely to see more upside in the near term. The opposite is true: if the SMH declines, the NASDAQ will probably start to pullback or even stage a stock-market correction. It's safe to say that the SMH is a leading indicator for technology.
A few other leading semiconductor stocks that are part of the SMH include Intel Corporation (BRCM ). Understand that Intel has the highest weighting in the Market Vectors Semiconductor ETF.
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