Semiconductors ($DJUSSC) are one of the worst areas of the market today and have been one of the worst areas of technology over the past week. KLA-Tencor (KLAC) has hit a key area of support, however, and certainly presents a much better reward to risk opportunity. 60.53 represents gap support and the February intraday low was 59.74. These are two critical levels to watch as support in the near-term. Should the DJUSSC begin to lead again on a relative basis, KLAC would most likely follow suit.
About the author:Tom Bowley is the Chief Market Strategist of EarningsBeats.com, a company providing a research and educational platform for both investment professionals and individual investors. Tom writes a comprehensive Daily Market Report (DMR), providing guidance to EB.com members every day that the stock market is open. Tom has contributed technical expertise here at StockCharts.com since 2006 and has a fundamental background in public accounting as well, blending a unique skill set to approach the U.S. stock market.