Active investors must understand the importance of market leadership, both on the way up and down.
And this is proving to be very accurate in the semiconductors sector. Semis played a huge role in the tech bull market, helping to push the and higher and higher over more than a decade.
But, as we have covered several times this year (), tech turned lower late last year, and the semis were the warning as a leader to the downside.
So today, we look at a weekly chart of one of the largest semiconductor companies in the arena—NVIDIA (NASDAQ:).
NVIDIA Weekly Chart
As you can see, a bearish head and shoulders pattern has led to a steep decline. NVDA is now testing crucial dual support (long-term up-trend line and lateral support).
This feels like an important support test for the sector’s leadership—and for the market as a whole. Stay tuned.