Semiconductor exchange traded funds were trailing the market Monday as the 50-day moving average acted as resistance for the sector ETFs.
“As the broader market trades higher and financials take the lead, technology is underperforming today,” said ETF manager BlackRock in a note Monday.
Within technology, semiconductors are “viewed as a leadership group” so investors should keep an eye on the sector ETFs “to gauge potential direction of the broader tech sector.”
ETFs include iShares PHLX SOX Semiconductor Sector (NasdaqGM: SOXX), Semiconductor HOLDRS (AMEX: SMH) and SPDR S&P Semiconductor (NYSEArca: XSD).
The funds have been pushed below their 50-day moving average, a key technical indicator. All three ETFs were negative on Monday although the Dow gained more than 100 points.