The Semi Conductor index is known as the (SOXX.O). The above chart highlights that when the Soxx index peaked and turned lower at (1) in 2000 & 2007, the S&P 500 soon followed this leader.
Currently the SOXX index is staring at its 38% Fibonacci retracement level and a couple of potential resistance lines at (2) above.
Bottom Line
When the Soxx turns Red, it often sends a cautionary signal to risk assets. Keep an eye on the Soxx in the next few weeks to see if it breaks out or if positive momentum happens to change.