Semiconductors Get Hit Hard Today

Stocks sold off today shattering any hopes the bulls may have had for a rally. The big loser today was the bank index (BKX) down almost 7% but we shouldn't be surprised as this index has been showing relative weakness for quite sometime. In addition to the financials being weak we also saw the semiconductor index get hit hard today down over 5%.

If you look at the above daily chart of the semiconductor index you'll notice how this group is breaking down as far as technicals are concerned. In the lower panel the MACD has give and sell signal and the ratio line of semis vs. the S&P500 has also broken its uptrend. The most important thing to look at is what price is doing and that too has broken its uptrend line.