The tip of the spear that is the cycle leading Semiconductor sector is fading fast
If broad Semi is a market leader, Semi Equipment is a leader within the Semi sector. I had been bullish on LRCX, AMAT and others due to the ongoing post-lockdown Semiconductor shortage because these companies (along with ASML, KLAC, ACLS, BRKS and others) are the solution to the chip supply bottleneck at Semi manufacturers (like TSM, INTC, AMD, etc.).
But it appears the market is looking ahead to the of the cycle or at least an interruption of it. LRCX/SMH and AMAT/SMH have been rolling over for a while and now appear to be breaking down. Not a positive forward indication for the Semi sector, nor the US stock market.
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