CHIP STOCKS WEIGH ON MARKET
SOX LEADS NASDAQ LOWER... In early morning trading, the Nasdaq 100 is the biggest loser among the major market averages. That's being caused mainly by a 2.50% drop in the Semiconductor (SOX) Index. Intel is down today and is meeting resistance at its 50-day moving average. News that Intel is cutting back on capital spending is having a negative impact on chip equipment makers. Two of the morning's biggest losers are Applied Materials and KLA Tencor.
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AMAT AND KLAC FALLING UNDER 50-DAY LINES... Applied Materials and KLA Tencor are among the morning's biggest tech losers. The next two charts show both chip equipment makers falling below their 50-day moving averages. KLAC has also broken minor chart support at last week's low. Their combined effect is pulling the SOX Index lower.
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FALLING SOX... The Semiconductor (SOX) Index is down 9 points this morning and is threatening its 50-day moving average, which sits at 323.75. The SOX may also retest initial chart support at last week's reaction low. The hourly bar chart shows that potential support level at 320.
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