ETF Trends
ETF Trends

Texas Instruments (NYSE: TXN) managed to rise about 1% on Thursday even though the company warned its second-quarter profit and revenue might come in weaker than expected.

The stock’s climb helped pull Semiconductor HOLDRS (AMEX: SMH) higher. However, some analysts see a bearish “double top” pattern playing out in the semiconductor ETF.

Serge Farra at The Stock & ETF Corner had previously identified the technical pattern and on Thursday wrote the double top “is unfolding pretty well.”

Semiconductor HOLDRS, which is a static basket of stocks, counts Texas Instruments as its top holding at 21.5% of the portfolio. Intel (NasdaqGS: INTC) also dominates the ETF at 19.4% of assets.

The sector fund is up about 4% so far this year.

A double top reversal is a bearish pattern made up of two consecutive peaks that are roughly equal, with a moderate trough in-between, according to

Semiconductor HOLDRS

The opinions and forecasts expressed herein are solely those of John Spence, 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.