Semiconductor Stocks Fall

Yesterday I wrote about the weakness I was seeing in the NASDAQ specifically the semicondustor stocks. Well today the semis got hit hard with heavy selling and was one of the weakest groups on the day. Some of the semiconductos stocks which experienced the most selling pressure today were ALTR(-7.07%), NVLS(-5.84%),XLNX(-5.54%) and KLAC(-4.60%) to name a few.

If you look at the above chart of the semiconductor index (SOX) you will notice that the index not only closed below support (last month's low) but also below the 50 day moving average. This is one group to watch closely as it can sometimes act as a leading indicator for the NASDAQ.