Dow Jones Futures Rise: This Key Tech Sector Flashes Big Warning

Dow Jones futures rose Thursday morning, along with S&P 500 futures and Nasdaq futures, after the stock market averages reversed lower Wednesday. The chip sector, which usually is a key part of stock market rallies, is quietly tumbling. Intel (INTC), Micron Technology (MU) and Nvidia (NVDA) stock breakouts have failed, while Taiwan Semiconductor (TSM), Broadcom (AVGO) and many others never got to a buy zone.To get more stock market news, you can visit shine news official website.
On Wednesday, the major stock market averages initially rallied as President Donald Trump softened his stance on China investment restrictions. But the Nasdaq composite reversed lower, closing down 1.5% to just above its 50-day moving average. The S&P 500 index sank 0.9%, settling below its 50-day line for the first time since May 8. The Dow Jones retreated 0.7% after reclaiming its 200-day line intraday.The Philadelphia Semiconductor index tumbled 2.5% to below its 200-day line.
Except for a few days two months ago, the Philly Sox chip index hasn't been below that level in two years.Intel stock has fallen 15% from its June 4 peak. On June 18, the world's largest chipmaker fell below a messy flat-base buy point and the 50-day line. Intel stock has kept falling.Nvidia stock had cleared a flattish double-bottom buy point of 239.25 on May 4, reclaiming its 50-day as well. Shares of the graphics chipmaker rallied to 269.20 on June 14, but then began retreating. By June 25, Nvidia had fallen below its 50-day and round-tripped a double-digit gain to close below its buy point.
Micron Technology ran up in the right side of a cup base in late May on earnings guidance and buyback news, briefly topping a buy point but never closing above it. Micron stock then tried to form a high handle formation, but has fallen back despite strong earnings and guidance last week. This week, Micron stock has tumbled below its 50-day line.Taiwan Semiconductor stock, the world's largest chip foundry, hit its worst levels since last August. Broadcom stock, a notable Apple (AAPL) iPhone chipmaker, has been struggling for the past seven months.Semiconductors tend to take part in any significant stock market uptrend. So if Intel stock, Micron stock and other chips are struggling,
 it's hard for the broader market to move forward. The Philly Sox index hit a short-term peak on June 7, below their March 13 record high, a few days before the Nasdaq composite, S&P 500 index and Dow Jones began topping out.Why do they matter? Chip stocks account for a big share of stock market capitalization, especially in the Nasdaq. But they're also used in so many products, from the Apple iPhone to servers to under the hood of your car. So if chip stocks are struggling, it's a bad sign for many end products as well.Energy groups accounted for the five top-performing industries Wednesday out of the 197 that IBD tracks. U.S. crude prices soared to their best close 2014 as plunging domestic supplies joining fears about U.S. sanctions on Iran exports. Many energy stocks hit new highs Wednesday.