Earnings season often comes with disappointment sometimes, as we are learning once more this morning. MCHP (Microchip Technology), not expected to report quarterly earnings until 10/30/14, was cut by at least one street analyst after warnings that their quarter would be light last night after the close.

How has this affected the Semiconductor space and broader Technology? Ouch, is the only way to qualify it after looking at an SOXX (iShares PHLX SOX Semiconductor Index, Expense Ratio 0.47%) intraday chart today, as it is getting whooped, down >5% and at one point down over 7%.

While not a huge fund in terms of assets under management (SOXX has about $502 million), it is an influential fund and a barometer for some in terms of overall Technology sector fundamental health. We don’t even see MCHP among the top ten holdings in SOXX, as the biggest components are MU (>8.4%), INTC (>8%), TXN (>8%), QCOM (>7.9%), and AMAT (>6%) and on the whole, these stocks are not reacting well to the MCHP warning.

INTC’s intraday chart looks frightening, with the stock briefly gapping down as low as $30.50 before a notable recovery to current levels in the $32’s. INTC has not had a $30 handle since July of this year, until at one point today earlier this morning.

And why should volatility in the Semis settle in at any point soon, as all of the aforementioned stocks are expected to release their own quarterly earnings numbers in the near term, INTC 10/14 for example.

SOXX is the biggest Semiconductor specific ETF in the U.S. listed marketplace, with a leg up on the smaller SMH (Market Vectors Semiconductor, Expense Ratio 0.35%) which has about $363 million in AUM.