This morning, the Market Vectors Semiconductor ETF (NYSEARCA:SMH) is trading higher by 0.21 cents to $31.80 a share. The semiconductor sectors continue to struggle around the daily chart 200 moving average. This tells us that this important sector is showing weak relative strength when compared to the major stock market indexes. Major stock indexes such as the Dow Jones Industrial Average (DJIA), S&P 500 Index, and the NASDAQ Composite are all trading nicely above the important daily chart 200 moving average. The problem with the semiconductor sector is that they should normally lead the markets higher, that is obviously not the case at this time as they are lagging the major stock indexes.
Some of the leading semiconductor stocks that continue to trade below the daily chart 200 moving average include Broadcom Corp (NASDAQ:BRCM), Nvidia Corp (NASDAQ:NVDA), Cree Inc (NASDAQ:CREE), and ARM Holdings plc (NASDAQ:ARMH). All of these stocks mentioned were former stock market leaders and are now weak relative to the major stock indexes. These stocks could lead the markets lower after this current stock market rally concludes.