Micron Technology (NasdaqGS: MU) fell 13% Friday afternoon following disappointing earnings and was the most actively traded stock on the Nasdaq by share volume.
The sell-off in the semiconductor company pushed exchange traded funds following the sector lower by 2%. Semiconductor HOLDRS (AMEX: SMH) continues to pull back after a “double top” bearish pattern was observed in the ETF, which holds Micron shares. [ETF Spotlight]
The semiconductor portfolio was off 1.9% in recent action, while other sector ETFs such as PowerShares Dynamic Semiconductor (NYSEArca: PSI) and SPDR S&P Semiconductor (NYSEArca: XSD) suffered similar declines.
A double top reversal is a bearish pattern comprised of two peaks of about equal height separated by a trough. [Texas Instruments Warns as Semiconductor ETF Sees Double Top]
Traders watch the semiconductor sector because it often acts as a leading indicator for the broader market.
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