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 (INTC), Taiwan Semiconductor Mfg. Co. Ltd. (TSM), Texas Instruments Incorporated (TXN), ASML Holding N.V. (ASML) and Broadcom Corporation (BRCM). Understand that Intel has the highest weighting in the Market Vectors Semiconductor ETF.