Today, the important semiconductor stocks are trading sharply higher. When the semiconductor stocks rally higher it is usually a good sign for the technology sector. The semiconductor sector is viewed by many traders as a leading indicator for the NASDAQ Composite. When the semiconductor sector lags the NASDAQ Composite it is usually a warning sign that the NASDAQ Composite will be weak in the future.
Today, the Market Vectors Semiconductors ETF (NYSEARCA:SMH) is climbing higher by 0.62 cents to $31.85 a share. Short term traders should watch for intra-day resistance around the $32.00, and $32.50 levels. Traders must remember that the daily chart of the SMH still remains very weak trading below all of the major moving averages.
Some other leading semiconductor stocks that are trading higher today include Broadcom Corporation (NASDAQ:BRCM), Texas Instruments Incorporated (NASDAQ:TXN), and SanDisk Corporation (NASDAQ:SNDK). Most of these chip stocks will usually trade together, however, some daily charts of the chip stocks are slightly different at this time.