Falling Chips - Market Analysis for Oct 24th, 2007

The Semiconductor HLDRs ETF (AMEX: SMH) continues to get clobbered. Yesterday Texas Instruments (NYSE: TXN) was the culprit. Today, components Intel (NASDAQ: INTC), Applied Materials (NASDAQ: AMAT), and Analog Devices (NYSE: ADI) all are under pressure...

As I noted to subscribers yesterday, the daily chart structure has a look of a very ominous, multi-month top formation that now is in the breakdown phase. The SMH projects optimally to the 33.40/00 target zone in the upcoming days/weeks, and possibly into the 31.00 area thereafter to fulfill its downside projections.