It has been sloppy with heavy selling, but the semiconductors have indeed held their primary breakout level at $34 on the SMH sector ETF. As long as that level continues to hold, this space makes sense to benefit from a capital rotation away from some of the crowded trades in the biotech, healthcare, and consumer staples sectors. At least, that is the bull case, in lieu of capital fleeing equities as a whole.
Nonetheless, large cap semis like Intel and the Texan (TXN) are acting very well, and I am looking at plays in the space as we speak inside 12631.
Here is the updated weekly sector ETF chart.
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