After hanging in extraordinarily well over the past few weeks, the chips are pretty clearly breaking down today. As you can see on an updated daily chart below of the SMH (ETF for the semiconductors), we have a high volume selling affair, pushing price below both a multi-month support trendline, as well as the 50 day simple moving average. Support is likely to kick in around $33.60, the lows from mid-late January, but if that does not hold you can expect a push down to at least the 100 day moving average.

Whether the broad market can continue to hang tough with the semis breaking down remains to be seen. However, we just lost a group that had previously shown relative strength.

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