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It is imperative for active investors to understand the importance of market leadership, both on the way up and down.

And this is proving to be very true in the Semiconductors sector. The Semis played a HUGE role in the tech bull market, helping to push the Nasdaq and Nasdaq 100 higher and higher over more than a decade.

But, as we have covered several times this year (click here for our latest article on Semis), tech turned lower late last year… and the Semis were the warning as a leader to the downside.

So today we look at a “weekly” chart of one of the bigger Semiconductor companies in the arena – Nvidia (NVDA).

As you can see, a bearish head and shoulders pattern has led to a steep decline. NVDA is now testing important dual support (long-term up-trend line and lateral support.

This feels like an important support test for semi-leadership… and the market as a whole. Stay tuned!