With a decline of 10% in the early going, shares of Intel (INTC) are having their worst earnings reaction day in over a decade (since January 2008). Not surprisingly, INTC’s decline has been felt across the entire semiconductor space as the S&P 500 Semiconductor and Equipment industry is down over 4%, which would be on pace for the worst day since January 3rd.
Today’s decline in the semis has also brought the industry’s price level back below its highs from last year. While not a major break of support, keep a close eye on the group. It’s still trading above the levels it was at last week before Qualcomm’s (QCOM) breakout on the news of the settlement with Apple (AAPL), but if it trades much lower and falls below potential support (same level where rallies failed multiple times in the second half of 2018) that would not only spell trouble for the group but most likely the entire Technology sector as well. Start a two-week free trial to Bespoke Premium to receive our updated market thoughts as they are published.