Semiconductor Stocks May be Hitting the Ceiling
In this stock market update video I focus on the semiconductor sector. I start off reviewing the Nasdaq Composite Index and one of its key indicators. I then look at both the Semiconductor ETF (SMH) and the Philadelphia Semiconductor Index (SOX).
Finally I check in on the top 6 semiconductor stocks of SMH. These are Taiwan Semiconductor (TSM), Intel (INTC), Nvidia (NVDA), Applied Materials (AMAT), Micron Technology (MU) and Texas Instruments (TXN). These 6 companies account for 42% of the holdings in SMH.
The SOX Index and 4 of the top 6 holdings in the SMH are bumping up against key resistance levels. With this happening after a very extended rally, the caution flags are out.