Chart of the Day - Tuesday, May 4th, 2021

Today’s Chart of the Day was shared by Seth Golden (@SethCL). It's a chart of the Semiconductor ETF, $SMH, over the past year. This is a key industry group to watch in the near term. Semis have been in a solid uptrend since the March 2020 low. However, their impressive rally has stalled out in recent months. As you might know, Semiconductors are the chips that are used in virtually every electronic device from iPhones to dishwashers. Due to their widespread use, Semiconductor stocks act as a leading indicator for both the technology sector and the broader market. Their leadership off the March 2020 low was reassuring to bulls as the market recovered last year, but this recent weakness does not exude confidence. As Seth points out, $SMH found buyers at the 100-day moving average in the final minutes of today's session. But overall, Semis continue to look vulnerable here, so keep an eye on how they behave in the remainder of the week.