- S&P 500 Futures – 10 points
- US 10-Year 2.06%
- Dollar Index 97.17
- VIX 16.25
- Oil $52.08
- Japan Nikkei +0.40%
- China Shanghai Comp. -0.99%
- Hong Kong HSI -0.65%
- South Korea Kospi -0.37%
- Germany DAX -0.83%
- UK FTSE -0.60%
Will Semis Sink Stocks on June 14
Stocks are pointing to a lower opening on June 14, and this will give us a good chance to see how resilient the market is. The negative news out of Broadcom last night is enough to send not just the chip stocks lower but the entire market. It will be interesting to see if investors use this weakness as an oppurunity to come into the market and scoop up stocks. Or perhaps even pressure the market lower.
The decline in the E-mini S&P Futures looks minor at this point and doesn’t point to much damage on any of the technicals at this point.
Chips Stocks – (SMH)
The SMH had appeared as if it was getting ready to make a move higher. However, that changed last night. Should the ETF fall below $102.25 today, it likely means a retest of support at $100. But if the ETF can hold above $102.25, then it is a good sign that the ETF can survive the Broadcom fall out.
Micron is one of the next chip companies to report results, and from the way things are set up, I am beginning to believe they will have to reset their second-half recovery expectations. The stock has managed to hang on a few times at support around $32. But this will be a real test for the stock. A drop below $32 sends the share much lower maybe to $29.
Nvidia looks as if it may be heading back to $139.
Qualcomm may be heading to $65.
AMD is in the same tight spot and looks like $29.40 is its next stop.
Lam Research (LRCXWealth Strength IndexLRCX is Flat and trending Up)
Lam Research could be on its way to $169.
This article appeared first on Mott Capital Management.
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