Will The Chip Stocks Sink The Market On June 14
Stocks were pointing to a lower opening on June 14, and this will give us a good chance to see how resilient the market is. The negative news out of Broadcom last night is enough to send not just the chip stocks lower but the entire market. It will be interesting to see if investors use this weakness as an oppurtunity to come into the market and scoop up stocks. Or perhaps even pressure the market lower.
S&P 500
The decline in the E-mini S&P Futures looks minor at this point and doesn’t point to much damage on any of the technicals at this point. (Premium content: 2 Big Indicators To Watch)
Chips Stocks
The SMH had appeared as if it was getting ready to make a move higher. However, that changed last night. Should the ETF fall below $102.25 today, it likely means a retest of support at $100. But if the ETF can hold above $102.25, then it is a good sign that the ETF can survive the Broadcom fall out.
Micron (MU)
Micron is one of the next chip companies to report results, and from the way things are set up, I am beginning to believe they will have to reset their second-half recovery expectations. The stock has managed to hang on a few times at support around $32. But this will be a real test for the stock. A drop below $32 sends the share much lower maybe to $29.
Nvidia
Nvidia (NVDA) looks as if it may be heading back to $139.
Qualcomm
Qualcomm (QCOM) may be heading to $65.
AMD
AMD is in the same tight spot and looks like $29.40 is its next stop.
Lam Research
Lam Research (LRCX) could be on its way to $169.
Disclaimer: This article is my opinion and expresses my views. Those views can change at a moment's notice when the market changes. I am not right all the time and I do not expect to be. I ...
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