The S&P 500 Value of Chip Stocks Is Set to Fall. Take a Look at These Two Graphs.

Sep 26, 2023

The S&P 500 Value of Chip Stocks Is Set to Fall.

The S&P 500 value of the S&P Semiconductors Select Industry Index is flat, which is bad news for the stock market as a whole.

The price and relative high of the index have been attained. And it has now broken the uptrend that began with its October low.

S&P Semiconductors is a market capitalization-weighted index. Unlike the major stock market indexes, its relative strength has barely regained half of its decline from its peak in 2000. Because the index is a leading indicator for the stock market, its inability to break past resistance suggests that the broad stock indexes may fall back in the coming weeks.

The Semiconductors Index weekly chart is displayed below. After the gains peaked, bearish reversals (indicated by red arrows) formed. Each reversal occurred when the Index challenged and breached its 11-week moving average, most recently in early August, when the index was rejected as it attempted to reclaim that level. The previous October bottom’s uptrend would be clearly broken.

The S&P 500 Value of Chip Stocks Is Set to Fall

The graph below shows the group’s decreasing relative strength. Semiconductors have produced a rounded top at a 23-year resistance level in contrast to the S&P 500 value of S&P 500 Equal Weight Index. While most indexes beat their 2000 highs by significant margins, semiconductors’ relative strength recovered just half of its 2000 low.

The S&P 500 Value of Chip Stocks Is Set to Fall

As a result, we continue to advise consumers to sell and profit from semiconductor equities, as well as the vast majority of other technological assets.

Subscribe Our Newsletter

Bitcoin Reclaims the $50,000 Mark: Here's What the Experts Say
Bitcoin Reclaims the $50,000 Mark: Here’s What the Experts Say

For the first time in three months, Bitcoin has crossed the $50,000 price barrier, bringing its market capitalization closer to $1 trillion.

Crypto
China's Economic Wobbles Cast Long Shadow For Asia
China’s Economic Wobbles Cast Long Shadow For Asia

China's economic woes have cast a pall over Asia, from South Korea to Thailand, as a severe manufacturing slowdown and trade bottlenecks in the world's second-largest economy impact Asia on both the supply and demand sides.

Banks and Finance
Get the ultimate solution: B2BinPay Get the ultimate solution: B2BinPay
Sponsored
Constantine

The Nature of Core Liquidity Providers: Who Are They and What is Their Feature?
Get an idea of core liquidity providers, their features, types, and main functions in trading markets.

discover
Top 10 Richest People in 2024

Oto

Top 10 Richest People of The World: 2024 Edition

Read about the top 10 richest individuals of 2024 to see who drives world finance and the industries that contribute to their enormous wealth.

Investing
Contact us bg

Contact Us

Contact the Liquidity Provider
for any questions and advertising inquiries

    Please fill out this contact form to get in touch with us

    / 3000

    By clicking “Get in touch” button, you agree to the privacy policy

    Successful!
    Thank you for your request.
    We will contact you shortly.
    Close

    Сonstantine

    CFD Trading Strategies: A Practical Guide to Risk and Execution

    CFD Trading Strategies

    Alexander

    What is a Fair Value Gap? A Guide to Trading Market Imbalances

    What is Fair Value Gap

    Vitaliy

    Triangle Patterns in Trading: Mastering Ascending, Descending & Symmetrical Strategies for Maximum Profit

    Triangle Patterns in Trading: Ascending, Descending & Symmetrical Guide

    Alexander

    What Is COTI? Payments, Token & Price Prediction

    What is a COTI coin

    Constantine

    Best Copy Trading Software in 2025

    Best Copy Trading Software in 2025

    Alex

    What Is an AI Agent? The Future of Finance Explained

    AI Agent Explained

    Constantine

    How to Start a Liquidity Provider Business?

    How to Start a Liquidity Provider Business

    Constantine

    How to Start a White Label Brokerage?

    How to start a white label brokerage

    Constantine

    How to Start a Multi-Asset Brokerage?

    How to Start a Multi-Asset Brokerage

    Hazem

    Crypto Ransomware – How They Happen and How to Avoid Them

    Crypto ransomware explained

    Constantine

    Best Web3 Browsers in 2025

    Best Web3 Browsers

    Constantine

    Best DAO Projects in 2025

    Best DAO projects in 2025

    Alexander

    Crypto Nodes That Pay: Your 2025 Guide to Top Passive Income Opportunities in Crypto

    crypto nodes that pay

    Alex

    Pi Network: Scam or Groundbreaking Crypto? The Full Analysis

    Pi Network Explained

    Constantine

    Triple Net Lease: Meaning, Benefits, and Strategies Explained

    Triple Net Lease

    Constantine

    Hanging Man Pattern: How to Identify and Trade It Effectively

    Hanging Man Pattern

    Alex

    5 Infinite Banking Mistakes That Could Cost You Thousands

    Infinite Banking Mistakes to Avoid

    Aleksander

    Solana Firedancer: Solving Solana’s Biggest Problems with a New Engine

    Solana Firedancer explained

    Alexander

    What Is an Interest Coverage Ratio? How to Use This Financial Metric to Evaluate Company Health

    Interest Coverage Ratio Explained

    Hazem

    After-Hours Trading: Can You Trade After Financial Markets Close?

    After-Hours Trading Explained

    Alexander

    How to Scale a Crypto Exchange Business and Stay Competitive

    how to scale crypto exchange business

    Constantine

    Crypto CrypticStreet Review: The Future of DeFi and Secure Crypto Trading

    Crypto CrypticStreet Review: The Future of DeFi and Secure Crypto Trading

    Alexander

    Bitcoin Power Law Explained: How It Shapes BTC’s Long-Term Growth

    Bitcoin Power Law Explained: How It Shapes BTC’s Long-Term Growth

    Hazem

    Megaphone Pattern​: What Is It? How to Use It In Trading

    Megaphone Pattern​: How to Read & Trade with It
    liquidity-provider-logo
    • News
      • Stock Market Forecast
      • Stocks
      • Banks and Finance
      • Companies
      • Crypto
      • Forex
      • AI
      • Technology
      • DeFi
      • NFT
    • Articles
      • Crypto Payments
      • Trading
      • Crypto Exchange Business
      • Forex Business
      • Fintech
      • Liquidity
      • FinTech Awards
      • Blockchain
      • Investing
      • NFT
      • DeFi
    • More
      • Videos
      • Liquidity Providers List
      • Crypto Payment Providers
      • White Label Brokerage Platforms
      • Broker CRM Platforms
    [email protected]

    © 2024 Liquidity Provider. All Rights Reserved

    Privacy Policy Cookie Policy
    This site is registered on wpml.org as a development site. Switch to a production site key to remove this banner.