Semiconductor exchange traded funds (ETFs) are getting a boost from sector component Micron (NYSE: MU), but the sector may face headwinds as the short sellers and technicalities are a factor.

The semiconductor sector is doing better than it has in more than three years, but some worry that it may be nearing a top. Some analysts forecast that any pullback in the market might spark a sell-off in semis, reports Rodrigo Campos for Reuters. For now, though, the markets are flying high and we’re coming off a strong earnings season.

That often bodes well for semiconductors, beneficiaries of increased corporate IT spending. [Semiconductor ETFs: On the Cheap?]

Earlier this week the sector did get a shot of strength as shares of Micron are turning in one of the sector’s best performances, with the memory chip maker currently up by 3.8 %. Shares are on pace to close at their highest price since August of 2007, reports RTT staff writer for RTT News. [Semiconductor ETFs Face A Slowdown.]

Is there a pullback in store? Maybe, but for now, you can’t deny that both SPDR S&P Semiconductor (NYSEArca: XSD) (of which Micron is 4.6%) and iShares PHLX SOXX Semiconductor (NYSEArca: SOXX) are more than 20% above their long-term trend lines.

Tisha Guerrero contributed to this article.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.