This afternoon, the Market Vectors Semiconductor ETF (NYSEARCA:SMH) is trading higher by 0.04 cents to $35.31 a share. This is a new high for the SMH which represents the leading semiconductor stocks in the sector. Traders should watch this area for near term resistance on the daily chart. The semiconductor sector will usually lead the NASDAQ Composite. Should the SMH trade higher from here then it would be a good indication that the NASDAQ Composite is likely to see more upside in the near term. The opposite would be true if the SMH declines, the NASDAQ Composite would likely start to pullback or even stage a stock market correction. It is safe to say that the SMH is a leading indicator for technology.
Some leading semiconductor stocks that are part of the SMH include Intel Corporation (NASDAQ:INTC), Taiwan Semiconductor Mfg. Co. Ltd. (ADR) (NYSE:TSM), Texas Instruments Incorporated (NASDAQ:TXN), and ASML Holding N.V. (ADR) (NASDAQ:ASML), and Broadcom Corporation (NASDAQ:BRCM). Please understand that INTC stock has the highest weighting in the Market Vectors Semiconductor ETF.