This Sector Will Tip the Next Move in Stocks

Watch this economic bellwether for clues. [Jeff Clark's Market Minute]( This Sector Will Tip the Next Move in Stocks By Clint Brewer, analyst, Market Minute Lately, all eyes are on the semiconductor chip sector. From geopolitical tensions between China and leading chip supplier Taiwan – to massive U.S investments bringing chip production on home soil – this sector is dominating the headlines. There’s a global power struggle to control chip production. That’s because we’ve all come to depend on semiconductors to power not just the most cutting-edge technology, but also our washing machines and light bulbs. But I’ve got my eye on the sector for a different reason. With its ascent as an economic bellwether… chip stocks could tip the next big move in the stock market. Recommended Link [$19 Makes Your Trading Bulletproof? (From The Man Who Has Doubled His Money 12 Times in 2022)]( [image]( “My name is Jeff Clark. For the last 38 years I’ve used one of the world’s most controversial trading strategies to profit during any market. Recommending ‘double your money trades’ 10 different times in 2008… 7 times in 2020… And 12 times already in 2022. REGARDLESS of a bull OR bear market… And after managing money for 100 of California’s wealthiest CEOs, athletes, and celebrities… Training over 1,000 people to become licensed stockbrokers – many of them joining mega-firms like Merrill Lynch or Paine Webber. And predicting the 2020 & 2022 crashes weeks in advance… I am now revealing the entire strategy, a 10-second demo, and even sending you the trade alerts EVERY single month… for just $19. No hidden costs, no B.S. [Click here]( before this special offer is taken down.” [Click Here to Get The Details.]( -- Chips and the State of the Stock Market The chip sector has grown into a $600 billion behemoth that’s found its way into all aspects of our daily lives. They’re the building blocks for the electronic things we interact with every day… from making our morning coffee to commuting in our vehicles. Because of that, the global ebb and flow of the chip industry can deliver timely insights into the state of the economy. And those fortunes (or lack thereof) are reflected in the stock prices of semiconductor companies. So just as chip companies can tell you about the state of the economy, chip stocks can tell you about the state of the stock market. That’s why I compare the performance of chip stocks to the broader stock market to confirm a trend, spot a developing opportunity, or an early warning signal. For example, chip stocks delivered a warning just before the peak in the stock market at the end of 2021, right before this bear market started. You can see that on the chart below… [(Click here to expand image)]( As the S&P 500 made a new high at the end of 2021 (dashed line), the VanEck Semiconductor ETF (SMH) failed to confirm that new high (boxed area). Chip stocks were delivering a warning about the stock market… Now, with the S&P 500 recently testing an important resistance level, chip stocks could be confirming the next move yet again. Here’s what I’m watching now… Free Trading Resources Have you checked out Jeff's free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career – at zero cost to you. Just [click here]( to check it out. Follow the Breakout First, let’s take a look at this chart of the S&P 500… [(Click here to expand image)]( After finding a low in mid-October, the S&P 500 rallied right up to its 200-day moving average (MA – green line) marked by the circle. The index saw a similar test of the 200-day MA back in August (arrow) when the S&P 500 was rejected, and a big decline gave way. Now look at the chart of SMH below with the 200-day MA as well – over the same time frame. There are a couple things I want you to notice… [(Click here to expand image)]( First, look at the rally with the arrow. SMH never came close to its 200-day MA as the S&P 500 tested its own level. The relative weakness in chip stocks warned of the last big breakdown in the S&P 500. But look at the recent price action. With the S&P 500 attempting to trade above the 200-day MA again, SMH is confirming the move this time – while also breaking out of a tight trading range as shown with the trendlines. That means chip stocks are confirming the S&P’s move higher this time. (Note that I’m writing this in the immediate aftermath of the latest consumer price index [CPI]. We still have a Fed meeting to contend with later today.) [Financial genius reveals unusual investment strategy that works in ANY market]( But a sustained breakout can set up a tactical rally into the end of the year for the stock market. Alternatively, if the S&P 500 and chip stocks can’t hold over the 200-day MA in the coming days, then that’s a warning sign to prepare for another decline. This week is packed with catalysts, so be sure to confirm the stock market’s next move with the price action in chip stocks. Best regards, Clint Brewer Analyst, Market Minute Reader Mailbag What other sectors do you watch closely to predict the stock market’s next moves? Let us know your thoughts – and any questions you have – at feedback@jeffclarktrader.com. In Case You Missed It… [Stock market predictions for 2023]( No one is expecting what she’s predicting, but she has a long track record of making accurate calls: the 2008 crisis… the 2020 market crash… and inflation back in 2021 before what we’re seeing now. Today, you can get in on her cutting-edge financial research before ringing in 2023. [Get it here now.]( [image]( Get Instant Access Click to read these free reports and automatically sign up for daily research. [The 101 Guide to Pre-IPO Investing]( [An Insider's Guide to Making a Fortune from Small Tech Stocks]( [The Ultimate Guide to Taking Back Your Privacy]( [Jeff Clark's Market Minute]( Jeff Clark Trader 55 NE 5th Avenue, Delray Beach, FL 33483 [www.jeffclarktrader.com]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. Jeff Clark Trader welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. 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