The semiconductor sector is a very important group of stocks that traders should follow closely. Often the semiconductor stocks will lead most technology stocks higher and lower. Since December 19, 2011 the Semiconductor Holders ETF (NYSEARCA:SMH) has rallied higher by $2.47 a share. This morning, the SMH is trading higher by 0.72 cents to $31.15 a share.

The Semiconductors Holders Trust (NYSEARCA:SMH) are trading lower by 0.25 cents to $29.51 a share. This ETF is viewed by many as a leading indicator for the tech heavy NASDAQ Composite. When the semiconductor sector shows strength most of the leading technology stocks will generally remain strong. The SMH is trading around a short term support level on the daily chart around the $29.00 area.

The semiconductor sector has been very strong along with the major stock indexes since October 4, 2011. At that time, the major stock indexes staged a massive reversal day into the closing bell, kicking off this massive nine day rally. The Semiconductor Holders Trust (NYSE:SMH) has surged higher by more than $4.50 from its October low pivot of $25.92 a share.

•Stocks bounced between gains and losses early in today's session but by the close the major indexes rose at least 1.4% each.
•SP 500 $SPX $SPY support/resistance moved up from 1,130 to 1,154 and 1,150 to 1,165.
•Support/resistance on the Nasdaq Composite $COMPX $QQQ rose to 2,483 from 2,470 and 2,536 from 2,483.
•Semiconductor Index $SOX $SMH lagged down 0.1%.