Chip stock breakout vs the rest of tech showing signs of topping out, says Carter Worth The Philadelphia Stock Exchange Semiconductor Index has recovered its losses relative to the S&P 500 Information Technology Sector. This places the index at a pivotal juncture where it may either form a “triple top” and underperform tech, or break out to new highs. The author’s perspective favors the “triple top” scenario, suggesting an underweight position in semiconductors.

• The Philadelphia Stock Exchange Semiconductor Index has recouped all its relative losses to the S&P 500 Information Technology Sector.
• This presents two possibilities: a “triple top” (underweight semis) or a breakout to new all-time highs (overweight semis).
• The author believes a “triple top” is more likely and advocates for an underweight position in semiconductors relative to other tech sectors.
• The current situation is described as a “coin toss” and a critical juncture for investors.