This is apparent when looking at the performance ratio of the Nasdaq Composite to the S&P 500 Index.

Tech is extremely important to the broader stock market and has been a market leader over the past decade-plus.

But as October comes to a close and the masses welcome Halloween, we look within the technology arena and focus on a key technology leader: The Semiconductors (SMH).

Tech bulls and bears are asking, Trick or Treat?

Below is a long-term “monthly” chart of the Semiconductors Sector SMH. A very clear rising trend line has formed as marked by (1). This trend line has been tested several times at each (2) and held.

SMH is currently testing long-term support at (3) where it may be creating a “Doji Star” reversal pattern.

Trick (bearish) = tech leadership breaks price support at (3).

Treat (bullish) = tech leadership holds price support at (3).

It’s October 31st and the close for the end of the month seems quite important, as a test of strong support is in play!

(Click on image to enlarge)

More By This Author:

Junk Bonds Reversal Would Be Bullish For Stocks!
Hi Yo Silver Time For Silver Mining Stocks?
Copper/Gold Ratio Says Bond Yields Rally Overdone