These days the technology sector is predominantly dominated by Apple Inc (NASDAQ:AAPL), Google Inc (NASDAQ:GOOG), and Amazon.com Inc (NYSE:AMZN). When an investor wants to know if the tech stocks are trading higher they will usually just look at one of these market leaders; however, it is the semiconductor sector that is still the technology barometer. Traders can simply follow the Market Vectors Semiconductor ETF (NYSEARCA:SMH) for a good indication of the sector. When this sector breaks out, or breaks down it is likely that the rest of the sector will soon follow.
This morning, the SMH is trading lower by just 0.13 cents to $31.12 a share. The SMH has been rallying higher since December 19, 2011 when it was trading as low as $28.69 a share. The SMH will face important resistance around the $32.00 area. Short term traders can watch for intra-day support around the $31.00, and $30.75 levels. Traders should remember that Intel Corp (NASDAQ:INTC) is the largest holding in the SMH, therefore, this stock carries a lot of weight and will affect the sector.