The Chip Stocks: Shades of 2018

• We keep harping on the semiconductor stocks, but there is a good reason for this. It is not a lagging indicator for the stock market. So, the multi-month underperformance of the group is a big concern. The SMH is now testing a key support level…and a break below that level could result in the kind of moves that took place in 2018…..HOWEVER, a big bounce of this support level will do just the opposite. So, investors should continue to keep an extremely close eye on this group.