Strength in ETFs tracking the highly cyclical semiconductor industry often reflects bullish sentiment on the overall economy.

From a technical perspective, Market Vectors Semiconductor ETF (NYSEArca: SMH) is facing a critical test at several support lines.

“After a big surge above $33 [a share], the Market Vectors Semiconductor ETF (SMH) peaked in mid-August and declined back to support in the $32.50 area,” according to StockCharts.

“Support here stems from broken resistance, the rising 200-day SMA [simple moving average]and the rising 50-day SMA,” StockCharts notes. “A successful test and break above $33 would be bullish. Failure to bounce and a break below $32 would be bearish.”

Semiconductor firms are more cyclical and more volatile than other kinds of tech companies, according to a Morningstar review of SMH.